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Market driven network neutrality and the fallacies of Internet traffic quality regulation

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  • Knieps, Günter

Abstract

In the U.S. paying for priority arrangements between Internet access service providers and Internet application providers to favor some traffic over other traf-fic is considered unreasonable discrimination. In Europe the focus is on mini-mum traffic quality requirements. It can be shown that neither market power nor universal service arguments can justify traffic quality regulation. In particular, heterogeneous demand for traffic quality for delay sensitive versus delay insen-sitive applications requires traffic quality differentiation, priority pricing and evolutionary development of minimal traffic qualities.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:aluivr:136
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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. Knieps, Günter, 2010. "Network neutrality and the evolution of the internet," Discussion Papers 135, University of Freiburg, Institute for Transport Economics and Regional Policy.
    15. Buti,Marco & Deroose,Servaas & Gaspar,Vitor & Martins,João Nogueira (ed.), 2010. "The Euro," Cambridge Books, Cambridge University Press, number 9789279098420, October.
    16. Pio Baake & Rainald Borck (ed.), 2007. "Public Economics and Public Choice," Springer Books, Springer, number 978-3-540-72782-8, January.
    17. 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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    Cited by:

    1. Knieps, Günter, 2012. "Competition and the railroads: A European perspective," Discussion Papers 142, University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Knieps, Günter & Zenhäusern, Patrick, 2013. "Regulatory fallacies in global telecommunications: The case of international mobile roaming," Discussion Papers 144, University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. Vogelsang Ingo, 2013. "The Endgame of Telecommunications Policy? A Survey," Review of Economics, De Gruyter, vol. 64(3), pages 193-270, December.
    4. Knieps, Günter & Stocker, Volker, 2014. "The fallacies of regulatory market splits: Network neutrality regulation ante portas," Discussion Papers 151, University of Freiburg, Institute for Transport Economics and Regional Policy.
    5. Knieps, Günter, 2013. "The evolution of the generalized differentiated services architecture and the changing role of the Internet engineering task force," Discussion Papers 147, University of Freiburg, Institute for Transport Economics and Regional Policy.
    6. Knieps, Günter, 2014. "Competition and third party access in railroads," Discussion Papers 150, University of Freiburg, Institute for Transport Economics and Regional Policy.
    7. Knieps, Günter & Stocker, Volker, 2014. "Market driven network neutrality and the fallacy of a two-tiered Internet traffic regulation," Discussion Papers 149, University of Freiburg, Institute for Transport Economics and Regional Policy.
    8. Knieps, Günter, 2013. "Market versus state in building the aviation value chain," Discussion Papers 146, University of Freiburg, Institute for Transport Economics and Regional Policy.

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