Internet Regulation, Two-Sided Pricing, and Sponsored Data

Jullien, Bruno and Sand-Zantman, Wilfried (2018) Internet Regulation, Two-Sided Pricing, and Sponsored Data. International Journal of Industrial Organization, 58. pp. 31-62.

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Official URL: http://tse-fr.eu/pub/32525

Abstract

We consider zero-rating by Internet service providers. We analyze the implications of offering sponsored data plans that allow content providers to pay for traffic on behalf of their consumers. These plans boost consumption of high-value content and decrease the networks'incentives to exclude low-value content. The welfare effect of allowing this price discrimination depends on the proportion of content targeted and the value of contents. Our analysis is extended to various cases (one-sided pricing, competing network, heterogenous cost, paid contents).

Item Type: Article
Language: English
Date: May 2018
Refereed: Yes
Uncontrolled Keywords: Internet, Neutrality
JEL codes: D82 - Asymmetric and Private Information
L51 - Economics of Regulation
L86 - Information and Internet Services; Computer Software
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 22 May 2018 09:28
Last Modified: 28 May 2018 09:43
OAI ID: oai:tse-fr.eu:32525
URI: http://publications.ut-capitole.fr/id/eprint/25869

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