Economics at your fingertips  

Net Neutrality, Business Models, and Internet Interconnection

Jay Choi (), Doh-Shin Jeon () and Byung-Cheol Kim ()

American Economic Journal: Microeconomics, 2015, vol. 7, issue 3, 104-41

Abstract: We analyze the effect of net neutrality regulation in a two-sided market framework when content is heterogeneous in its sensitivity to delivery quality. We characterize the equilibrium in a neutral network constrained to offer the same quality vis-à-vis a non neutral network where Internet service providers are allowed to engage in second degree price discrimination with a menu of quality-price pairs. We find that the merit of net neutrality regulation depends crucially on content providers' business models. More generally, our analysis can be considered a contribution to the literature on second-degree price discrimination in two-sided platform markets. (JEL D42, D43, D85, L51, L86, L88)

JEL-codes: D42 D43 D85 L51 L86 L88 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.1257/mic.20130162
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22) Track citations by RSS feed

Downloads: (external link) (application/pdf) (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

American Economic Journal: Microeconomics is currently edited by Johannes Hörner

More articles in American Economic Journal: Microeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

Page updated 2021-06-13
Handle: RePEc:aea:aejmic:v:7:y:2015:i:3:p:104-41