Internet Interconnection and Network Neutrality

Choi, Jay Pil, Jeon, Doh-Shin and Kim, Byung-Cheol (2012) Internet Interconnection and Network Neutrality. TSE Working Paper, n. 12-355, Toulouse

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Official URL: http://tse-fr.eu/pub/26550

Abstract

We analyze competition between interconnected networks when content is heterogeneous in
its sensitivity to delivery quality. In a two-sided market framework, we characterize the
equilibrium in a neutral network constrained to offer the same quality and assess the impact
of such a constraint vis-à-vis a non-neutral network where Internet service providers (ISPs)
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 as a contribution to the
literature on second-degree price discrimination in two-sided platform markets.

Item Type: Monograph (Working Paper)
Language: English
Date: November 2012
Place of Publication: Toulouse
JEL codes: D4 - Market Structure and Pricing
L1 - Market Structure, Firm Strategy, and Market Performance
L5 - Regulation and Industrial Policy
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 09 Jul 2014 17:31
Last Modified: 17 May 2019 14:55
OAI ID: oai:tse-fr.eu:26550
URI: http://publications.ut-capitole.fr/id/eprint/15442

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