Krämer, Jan and Wiewiorra, Lukas (2009): Network neutrality and congestion sensitive content providers: Implications for service innovation, broadband investment and regulation.
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We consider a two-sided market model with a monopolistic Internet Service Provider (ISP), network congestion sensitive content providers (CPs), and Internet customers in order to study the impact of Quality-of-Service (QoS) tiering on service innovation, broadband investments, and welfare in comparison to network neutrality. We find that QoS tiering is the more ecient regime in the short-run. However it does not promote entry by new, congestion sensitive CPs, because the ISP can expropriate much of the CPs' surplus. In the long-run, QoS tiering may lead to more or less broadband capacity and welfare, depending on the competition-elasticity of CPs' revenues.
|Item Type:||MPRA Paper|
|Original Title:||Network neutrality and congestion sensitive content providers: Implications for service innovation, broadband investment and regulation|
|English Title:||Network Neutrality and Congesition Sensitive Content Providers: Implications for Service Innovation, Broadband Investment and Regulation|
|Keywords:||Telecommunications, Internet, Net Neutrality, Network Congestion, Two-Sided Market, Quality of Service, Innovation, Investment, Regulation, Internet Freedom Preservation Act|
|Subjects:||L - Industrial Organization > L5 - Regulation and Industrial Policy
L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications
D - Microeconomics > D4 - Market Structure and Pricing
|Depositing User:||Jan Kraemer|
|Date Deposited:||04. Dec 2010 20:33|
|Last Modified:||13. Feb 2013 08:52|
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Available Versions of this Item
Innovation through Discrimination!? A Formal Analysis of the Net Neutrality Debate. (deposited 10. Aug 2009 08:04)
Network Neutrality and Congesition-Sensitive Content Providers: Implications for Service Innovation, Broadband Investment and Regulation. (deposited 31. Mar 2010 11:30)
Network Neutrality and Congestion-Sensitive Content Providers: Implications for Service Innovation, Broadband Investment and Regulation. (deposited 16. Apr 2010 01:42)
- Network neutrality and congestion sensitive content providers: Implications for service innovation, broadband investment and regulation. (deposited 04. Dec 2010 20:33) [Currently Displayed]
- Network Neutrality and Congestion-Sensitive Content Providers: Implications for Service Innovation, Broadband Investment and Regulation. (deposited 16. Apr 2010 01:42)
- Network Neutrality and Congesition-Sensitive Content Providers: Implications for Service Innovation, Broadband Investment and Regulation. (deposited 31. Mar 2010 11:30)