Tuesday, November 2, 2010
Eitan Altman and Pierre Bernhard, both Institut National de Recherche en Informatique et Automatique, George Kesidis, Pennsylvania State University, Sulan Wong, University of Coruna Faculty of Law, and Julia Rojas-Mora, University of Barcelona Department of Business Economics and Organization, have published A Study of Non-Neutral Networks. Here is the abstract.
Hahn and Wallsten wrote that net neutrality "usually means that broadband service providers charge consumers only once for Internet access, do not favor one content provider over another, and do not charge content providers for sending information over broadband lines to end users." In this paper we study the implications of being non-neutral, particularly by charging the content providers. Using game theoretic tools, we show that by adding the option for the service providers to charge the content providers, not only may the content providers and the internauts suffer, but also the access provider's performance degrades.
Download the paper from SSRN at the link.