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Network neutrality and the evolution of the internet

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  • Knieps, Günter

Abstract

In order to create incentives for Internet traffic providers not to discriminate with respect to certain applications on the basis of network capacity require-ments, the concept of market driven network neutrality is introduced. Its basic characteristics are that all applications are bearing the opportunity costs of the required traffic capacities. An economic framework for market driven network neutrality in broadband Internet is provided, consisting of congestion pricing and quality of service differentiation. However, network neutrality regulation with its reference point of the traditional TCP would result in regulatory micro-management of traffic network management.

Suggested Citation

  • Knieps, Günter, 2010. "Network neutrality and the evolution of the internet," Discussion Papers 135, University of Freiburg, Institute for Transport Economics and Regional Policy.
    • Handle: RePEc:zbw:aluivr:135
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    References listed on IDEAS

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    1. Blankart, Charles B. & Knieps, Günter & Zenhäusern, Patrick, 2007. "Regulation of new markets in telecommunications? Market dynamics and shrinking monopolistic bottlenecks," Discussion Papers 112 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Knieps, Günther, 2010. "Regulatory reforms of European network industries and the courts," Discussion Papers 129 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. Knieps, Günter, 2007. "Disaggregierte Regulierung in Netzsektoren: normative und positive Theorie," Discussion Papers 116, University of Freiburg, Institute for Transport Economics and Regional Policy.
    4. Knieps, Günter, 2010. "Network Neutrality and the Evolution of the Internet," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 19, International Telecommunications Society (ITS).
    5. G. Knieps, 2005. "Telecommunications Markets in the Stranglehold of EU Regulation: On the need for a disaggregated regulatory contract," Competition and Regulation in Network Industries, Intersentia, vol. 6(2), pages 75-94, June.
    6. Knieps, Günter, 2006. "Die LKW-Maut und die drei Grundprobleme der Verkehrsinfrastrukturpolitik," Discussion Papers 111, University of Freiburg, Institute for Transport Economics and Regional Policy.
    7. Birke, Franziska, 2007. "Universaldienstregulierung in der Telekommunikation heute: Herausforderungen, Chancen und Risiken ; ein historischer Ansatz," Discussion Papers 114, University of Freiburg, Institute for Transport Economics and Regional Policy.
    8. Knieps, Günter, 2010. "Zur Evolutorik von Marktmechanismen für Flughafenslots," Discussion Papers 131, University of Freiburg, Institute for Transport Economics and Regional Policy.
    9. Knieps, Günter, 2009. "Wettbewerb und Netzevolutorik," Discussion Papers 122, University of Freiburg, Institute for Transport Economics and Regional Policy.
    10. Knieps, Günter, 2007. "Wettbewerbspotenziale im Nahverkehr: Perspektiven und institutionelle Barrieren," Discussion Papers 113, University of Freiburg, Institute for Transport Economics and Regional Policy.
    11. Knieps, Günter, 2010. "Der Einfluss von Gerichtsentscheidungen auf Regulierungsreformen," Discussion Papers 133, University of Freiburg, Institute for Transport Economics and Regional Policy.
    12. Knieps, Günter, 2005. "Telecommunications markets in the stranglehold of EU regulation: on the need for a disaggregated regulatory contract," Discussion Papers 109 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    13. Knieps, Günter, 2009. "Sektorsymmetrische Regulierung in Netzsektoren: ein Vergleich zwischen Gas und Elektrizität," Discussion Papers 126, University of Freiburg, Institute for Transport Economics and Regional Policy.
    14. Buti,Marco & Deroose,Servaas & Gaspar,Vitor & Martins,João Nogueira (ed.), 2010. "The Euro," Cambridge Books, Cambridge University Press, number 9789279098420.
    15. Pio Baake & Rainald Borck (ed.), 2007. "Public Economics and Public Choice," Springer Books, Springer, number 978-3-540-72782-8, November.
    16. Weiß, Hans-Jörg, 2010. "Markt und Staat in der Verkehrswirtschaft," Discussion Papers 134, University of Freiburg, Institute for Transport Economics and Regional Policy.
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    1. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of Internet traffic quality regulation," Discussion Papers 136, University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of internet traffic quality regulation," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52149, International Telecommunications Society (ITS).

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