Choi, Jay Pil, Jeon, Doh-Shin and Kim, Byung-Cheol (2014) Net neutrality, Network capacity and Innovation at the Edges. TSE Working Paper, n. 14-521, Toulouse

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Abstract

We study how net neutrality regulations affect a high-bandwidth content provider (CP)'s investment incentives to enhance its quality of services (QoS) in content delivery to end users. We find that the effects crucially depend on whether the CP's entry decision is constrained by the Internet service provider (ISP)'s network capacity. If capacity is relatively large, prioritized services reduce the QoS investment as they become substitutes, but improve trafic management. With limited capacity, by contrast, prioritized delivery services are complementary to the CP's investments and can facilitate entry of congestionsensitive content; however, this creates more congestion for other existing content. Our analysis suggests that the optimal policy may call for potentially asymmetric regulations across mobile and fixed networks.

Item Type: Monograph (Working Paper)
Language: English
Date: 31 August 2014
Place of Publication: Toulouse
Uncontrolled Keywords: Net neutrality, network capacity, entry, quality of services (QoS), externalities, investments
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 16 Mar 2015 14:49
Last Modified: 02 Apr 2021 15:49
OAI Identifier: oai:tse-fr.eu:28412
URI: https://publications.ut-capitole.fr/id/eprint/16556

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