Broadband Internet: Open Access and Content Competition
Broadband “open access” regulation mandates openness of conduits (e.g. upgraded cable television) to service providers (e.g. America Online), but policy discussion often suggests that the ultimate goal is openness to advanced content (streaming video, interactive e-commerce, etc.). We define two forms of regulation, open access and common carriage, and discuss when they are equivalent. We argue that they are quite different in local access broadband. We develop a systems model with free entry and competition in all three industry segments (conduits, service providers, and content) and examine how open access regulation affects the number of firms in each. We confirm the view that an open access requirement can reduce entry of physical conduits, and more surprising we also describe conditions under which it can reduce the amount of content available to consumers.
|Date of creation:||Jun 2004|
|Date of revision:|
|Contact details of provider:|| Postal: PAC 123, 238 Church Street, Middletown, CT 06459-0007|
Web page: http://www.wesleyan.edu/econ/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Dos Santos Ferreira, R. & Thisse, J.-F., . "Horizontal and vertical differentiation: The Launhardt model," CORE Discussion Papers RP 1216, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Tasneem Chipty, 2001. "Vertical Integration, Market Foreclosure, and Consumer Welfare in the Cable Television Industry," American Economic Review, American Economic Association, vol. 91(3), pages 428-453, June.
- 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.
- Jeffrey Church & Neil Gandal, 2000.
"Systems Competition, Vertical Merger, and Foreclosure,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 9(1), pages 25-51, 03.
- Church, J. & Gandal, N., 1996. "Systems Competition, Vertical Merger and Foreclosure," Papers 6-96, Tel Aviv - the Sackler Institute of Economic Studies.
- 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.
- Gehrig, Thomas, 1998. "Competing markets," European Economic Review, Elsevier, vol. 42(2), pages 277-310, February.
- Byong-Duk Rhee, 1996. "Consumer Heterogeneity and Strategic Quality Decisions," Management Science, INFORMS, vol. 42(2), pages 157-172, February.
- 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.
- Church, Jeffrey & Gandal, Neil, 1992. "Network Effects, Software Provision, and Standardization," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 85-103, March.
When requesting a correction, please mention this item's handle: RePEc:wes:weswpa:2004-002. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manolis Kaparakis)
If references are entirely missing, you can add them using this form.