Ökonomische Grundlagen des Wettbewerbs im Internet
No 14, DICE Ordnungspolitische Perspektiven from Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
The main internet problem is how to deal with temporary overload, which negatively affects quality-sensitive high value services while others do not suffer. Capacity overprovisioning als well as volume tariffs will not be efficient. The optimal solution is the application of priority pricing, where higher prices are paid for higher qualities. This is economically superior to network management as well as to strict net neutrality.
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