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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/28525
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| Title: | Net Neutrality on the Internet: A Two-sided Market Analysis |
| Authors: | Economides, Nicholas - NYU Stern School of Business
Tag, Joacim - IFN |
| Keywords: | Keywords: net neutrality, two-sided markets, Internet, monopoly,
duopoly,regulation, discrimination |
| Issue Date: | 2007 |
| Series/Report no.: | NET Institute Working Paper;07-45 |
| Abstract: | We discuss net neutrality regulation in the context of a two-sided
market model. Platforms sell Internet access services to consumers and
may set fees to content - and application providers on the Internet.
When access is monopolized, for reasonable parameter ranges, net
neutrality regulation (requiring zero fees to content providers)
increases the total industry surplus as compared to the fully private
optimum at which the monopoly platform imposes positive fees on content
providers. However, there are also parameter ranges for which total
industry surplus is reduced. Imposing net neutrality in duopoly with
multi-homing content providers and single-homing consumers increases the
total surplus as compared to duopoly competition with positive fees to
content providers. |
| URI: | http://hdl.handle.net/2451/28525 |
| Appears in Collections: | NET Institute Working Papers Series
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