Network Neutrality under ISP duopoly: on the ability to assign capacity
We analyze the impact of network neutrality regulation on: (i) competition between CPs, and on (ii) ISPs. incentives to invest. We consider both competition between ISPs and between CPs and show that, if ISPs can o¤er network services of different quality to CPs, they prefer to sell the highest quality network services to the CP that collects the highest advertising revenues. We further show that the impact of network neutrality regulation on the investment in the quality of network services is potentially ambiguous and depends on: (i) whether ISPs are symmetric, and (ii) the ISPs.ability to assign network.s capacity to CPs. If ISPs are symmetric and have full discretion on how to allocate the level of quality of network services among CPs, investment and welfare are higher under the discriminatory regime.
|Date of creation:||2013|
|Contact details of provider:|| Postal: Colégio Espírito SANTO|
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- Reggiani, Carlo & Valletti, Tommaso, 2016.
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- Bourreau, Marc & Kourandi, Frago & Valletti, Tommaso, 2014.
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9827, C.E.P.R. Discussion Papers.
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07-14, NET Institute, revised Sep 2007.
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- Nicholas Economides & Joacim Tag, 2007. "Net Neutrality on the Internet: A Two-sided Market Analysis," Working Papers 07-26, New York University, Leonard N. Stern School of Business, Department of Economics.
- Nicholas Economides & Joacim Tåg, 2007. "Net Neutrality on the Internet: A Two-sided Market Analysis," Working Papers 07-45, NET Institute, revised Nov 2007.
- Nicholas Economides & Benjamin Hermalin, 2010.
"The Economics of Network Neutrality,"
10-20, New York University, Leonard N. Stern School of Business, Department of Economics.
- Schuett Florian, 2010. "Network Neutrality: A Survey of the Economic Literature," Review of Network Economics, De Gruyter, vol. 9(2), pages 1-15, June.
- Musacchio John & Schwartz Galina & Walrand Jean, 2009. "A Two-Sided Market Analysis of Provider Investment Incentives with an Application to the Net-Neutrality Issue," Review of Network Economics, De Gruyter, vol. 8(1), pages 1-18, March.
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