Tuesday, November 2, 2010
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.