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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/29499
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| Title: | Broadband User Discrimination and the Net Neutrality Debate |
| Authors: | Guo, Hong - University of Notre Dame
Bandyopadhyay, Subhajyoti - University of Florida
Cheng, Hsing K. - University of Florida |
| Keywords: | Net neutrality, Internet access pricing, congestion pricing, traffic
prioritization, public policy, market regulation |
| Issue Date: | 2009 |
| Series/Report no.: | Net Institute Working Paper;09-13 |
| Abstract: | The net neutrality debate has brought out economic rationale for and
against a variety of proposals of the broadband service providers to
differentiate between different classes of users. Broadband users are
characterized by the differing amounts of content they request online,
as well as their valuation for such content. A broadband service
provider (BSP) has two potential instruments for user discrimination
– price discrimination and traffic prioritization (or
degradation). We model six different pricing and prioritization options
that cover many of the strategies that actual BSPs have adopted in the
marketplace. By comparing these options, we find that imposing net
neutrality increases the BSP's profit if the BSP price discriminates
different consumer groups. If net neutrality is not imposed, however,
the BSP might still prefer a net neutrality outcome depending on the
various parameter values. These and other results will be useful both
for the broadband service providers as they mull over the introduction
of the different pricing strategies and for policymakers who are dealing
with the net neutrality issue. |
| URI: | http://hdl.handle.net/2451/29499 |
| Appears in Collections: | NET Institute Working Papers Series
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