The exclusion of competing one-way essential complements: Implications for net neutrality

B-Tier
Journal: International Journal of Industrial Organization
Year: 2017
Volume: 52
Issue: C
Pages: 358-392

Authors (2)

Broos, Sébastien (not in RePEc) Gautier, Axel (Université de Liège)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We analyze the incentives of internet service providers (ISPs) to break net neutrality by excluding competing one-way essential complements, i.e. internet applications competing with their own products. A typical example is the exclusion of VoIP applications by telecom companies offering internet and voice services. A monopoly ISP may want to exclude a competing internet app if it is of inferior quality and the ISP cannot ask for a surcharge for its use. Competition between ISPs never leads to full app exclusion but it may lead to a fragmented internet where only one ISP offers the application. We show that, both in monopoly and duopoly, prohibiting the exclusion of the app and surcharges for its use does not always improve welfare.

Technical Details

RePEc Handle
repec:eee:indorg:v:52:y:2017:i:c:p:358-392
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25