Net neutrality and innovation at the core and at the edge

Carlo Reggiani and Tommaso Valletti

International Journal of Industrial Organization, 2016, vol. 45, issue C, 16-27

Abstract: How would abandoning Internet net neutrality affect content providers that have different sizes? We model an Internet broadband provider that can offer a different quality of service (priority) to heterogeneous content providers. Internet users can potentially access all content, although they browse and click ads with different probabilities. Net neutrality regulation effectively protects innovation done at the edge by small content providers. Prioritization, instead, increases both infrastructure core investment and welfare only if it sufficiently stimulates innovation from the large content provider.

Keywords: Internet; Net neutrality; Congestion; Innovation (search for similar items in EconPapers)
JEL-codes: D4 L12 L43 L51 L52 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

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Working Paper: Net neutrality and innovation at the core and at the edge (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:45:y:2016:i:c:p:16-27

DOI: 10.1016/j.ijindorg.2015.12.005

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