Net Neutrality, Business Models, and Internet Interconnection

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2015
Volume: 7
Issue: 3
Pages: 104-41

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We analyze the effect of net neutrality regulation in a two-sided market framework when content is heterogeneous in its sensitivity to delivery quality. We characterize the equilibrium in a neutral network constrained to offer the same quality vis-à-vis a non neutral network where Internet service providers are allowed to engage in second degree price discrimination with a menu of quality-price pairs. We find that the merit of net neutrality regulation depends crucially on content providers' business models. More generally, our analysis can be considered a contribution to the literature on second-degree price discrimination in two-sided platform markets. (JEL D42, D43, D85, L51, L86, L88)

Technical Details

RePEc Handle
repec:aea:aejmic:v:7:y:2015:i:3:p:104-41
Journal Field
General
Author Count
3
Added to Database
2026-01-25