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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/29867
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| Title: | Network Neutrality and Congestion Sensitive Content Providers:
Implications for Service Innovation, Broadband Investment and Regulation |
| Authors: | Kramer, Jan - Karlsruhe Institute of Technology
Wiewiorra, Lukas - Karlsruhe Institute of Technology |
| Keywords: | Telecommunications, Net Neutrality, Quality of Service, Innovation,
Investment, Regulation |
| Issue Date: | 2010 |
| Series/Report no.: | Net Institute Working Paper;10-09 |
| Abstract: | We consider a two-sided market model with a monopolistic Internet
Service Provider (ISP), network congestion sensitive content providers
(CPs), and Internet customers in order to study the impact of Quality-
of-Service (QoS) tiering on service innovation, broadband investments,
and welfare in comparison to network neutrality. We find that QoS
tiering is the more efficient regime in the short-run. However it does
not promote entry by new, congestion sensitive CPs, because the ISP can
expropriate much of the CPs' surplus. In the long-run, QoS tiering may
lead to more or less broadband capacity and welfare, depending on the
competition-elasticity of CPs' revenues. |
| URI: | http://hdl.handle.net/2451/29867 |
| Appears in Collections: | NET Institute Working Papers Series
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