Law, Social Welfare, and Net Neutrality

Keith N. Hylton ()
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Keith N. Hylton: Boston University

Review of Industrial Organization, 2017, vol. 50, issue 4, No 3, 417-429

Abstract: Abstract Net neutrality generates wealth transfers from one type of internet content provider to another. In theory, these transfers might be socially desirable, and could be justified on the basis of informational externalities similar to those cited to justify fair use in copyright law. In practice, however, the conditions that justify fair use do not hold where net neutrality operates. Moreover, the internal subsidization required by net neutrality generates a regressive transfer. The welfare gains that might come from controlling anticompetitive abuse or government coercion through implementation of net neutrality can be achieved by alternative policies with less harmful consequences.

Keywords: Anticompetitive exclusion; Fair use; Net neutrality; Telecommunications regulation; Vertical integration (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1007/s11151-016-9552-x

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