An economic model of the last-mile internet

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 191
Issue: C
Pages: 620-638

Score contribution per author:

0.673 = (α=2.02 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Pricing decisions of an internet service provider (ISP) are studied in a model based on complementarity between broadband connection and content, congestion externalities on consumer side and oligopolistic externalities on content provider side. When consumers face two-part tariffs from the ISP, the equilibrium is sensitive to usage price level but is invariant to its structure on two sides. With nonlinear pricing, the markup of content providers affects consumer prices while congestion externalities and elasticity of content demand shape the price for providers. For the zero-price rule, a neutrality-of-policy result holds with two-part tariffs but not with nonlinear pricing.

Technical Details

RePEc Handle
repec:eee:jeborg:v:191:y:2021:i:c:p:620-638
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25