Price discrimination of ott providers under duopolistic competition and multi-dimmesional product differentiation in retail broadband access

José Marino García García, Aurelia Valiño Castro and A. Jesús Sánchez Fuentes

No 1607, Working Papers. Collection A: Public economics, governance and decentralization from Universidade de Vigo, GEN - Governance and Economics research Network

Abstract: Network neutrality regulation prevents price discrimination from Access Providers to Content Providers and product differentiation in terms of connection quality in the retail broadband access market. This paper analyzes the economic implications of price discrimination under duopolistic competition and multi-dimensional product differentiation in retail internet access using a sequential-moves game theoretic model. Under this framework, we discuss the impact of product differentiation and price discrimination on social welfare, and offer systematic simulations using feasible ranges for parameters value to help discern the impact of departing from network neutrality regulation on social welfare.

Keywords: network neutrality; two sided markets; price discrimination; product differentiation; queuing theory; network congestion; duopoly; competition policy. (search for similar items in EconPapers)
JEL-codes: C70 D43 L10 L13 L51 L86 L96 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2016-11
New Economics Papers: this item is included in nep-com, nep-ict, nep-ind, nep-mic, nep-mkt, nep-pay and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:gov:wpaper:1607

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