Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Thursday, November 4, 2010

Network Neutrality and Congestion Sensitive Content Providers: Implications for Service Innovation, Broadband Investment and Regulation

Posted by D. Daniel Sokol

Jan Kraemer (Karlsruhe Institute of Technology, Institute of Information Systems and Management) and Lukas Wiewiorra (Karlsruhe Institute of Technology, Institute of Information Systems and Management) address Network Neutrality and Congestion Sensitive Content Providers: Implications for Service Innovation, Broadband Investment and Regulation.

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.

http://lawprofessors.typepad.com/antitrustprof_blog/2010/11/network-neutrality-and-congestion-sensitive-content-providers-implications-for-service-innovation-br-1.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0134882c67a2970c

Listed below are links to weblogs that reference Network Neutrality and Congestion Sensitive Content Providers: Implications for Service Innovation, Broadband Investment and Regulation:

Comments

Post a comment