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Broadband Internet: Net Neutrality versus Open Access

  • Christiaan Hogendorn

    ()

    (Economics Department, Wesleyan University)

“Network neutrality” and “open access” are two policies designed to preserve openness on the Internet. Open access mandates openness of conduits (e.g. television cable and DSL) to service providers (e.g. America Online), while network neutrality mandates openness to advanced content (streaming video, interactive e-commerce, etc.). We develop a systems model with free entry and competition in all three industry segments (conduits, service provider intermediaries, and content) and examine the effects of the two types of regulation. We find that open access does not necessarily result in more openness of content and is not a substitute for network neutrality.

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File URL: http://www.cni.tu-berlin.de/fileadmin/documents/RePEc/cni/working_paper/hogendorn_2006-broadband-internet-cni_wp_no_2006-09.pdf
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Paper provided by Center for Network Industries and Infrastructure (CNI) in its series Working Papers with number 2006-09.

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Length: 29 pages
Date of creation: 15 Sep 2006
Date of revision:
Handle: RePEc:cni:wpaper:2006-09
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Web page: http://www.cni.tu-berlin.de
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  1. Dos Santos Ferreira, Rodolphe & Thisse, Jacques-Francois, 1996. "Horizontal and vertical differentiation: The Launhardt model," International Journal of Industrial Organization, Elsevier, vol. 14(4), pages 485-506, June.
  2. N. Gregory Mankiw & Michael D. Whinston, 1986. "Free Entry and Social Inefficiency," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 48-58, Spring.
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  8. Faulhaber, Gerald R & Hogendorn, Christiaan, 2000. "The Market Structure of Broadband Telecommunications," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 305-29, September.
  9. Spence, Michael, 1976. "Product Differentiation and Welfare," American Economic Review, American Economic Association, vol. 66(2), pages 407-14, May.
  10. Hahn Robert W. & Wallsten Scott, 2006. "The Economics of Net Neutrality," The Economists' Voice, De Gruyter, vol. 3(6), pages 1-7, June.
  11. Gehrig, Thomas, 1998. "Competing markets," European Economic Review, Elsevier, vol. 42(2), pages 277-310, February.
  12. Rubinfeld, Daniel L & Singer, Hal J, 2001. "Vertical Foreclosure in Broadband Access?," Journal of Industrial Economics, Wiley Blackwell, vol. 49(3), pages 299-318, September.
  13. Doganoglu, Toker & Wright, Julian, 2006. "Multihoming and compatibility," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 45-67, January.
  14. Scott Savage & Michael Wirth, 2005. "Price, Programming and Potential Competition in US Cable Television Markets," Journal of Regulatory Economics, Springer, vol. 27(1), pages 25-46, September.
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