Net Neutrality and the Incentives (Not) to Exclude Competitors

Ralf Dewenter and Rösch Jürgen ()
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Rösch Jürgen: Department of Economics, Helmut Schmidt University Hamburg, Holstenhofweg 85, D-22043 Hamburg, Germany

Review of Economics, 2016, vol. 67, issue 2, 209-229

Abstract: This paper analyses the incentives of a vertical integrated Internet service provider (ISP) to block competitors from content markets. Using a simple model we find that the ISP does not block competing content providers as long as the contents are differentiated sufficiently. Exclusion only takes place when the competitor offers perfect homogeneous content and the ISP has a local monopoly over its Internet access customers or if network effects are strong. In this case, however, the abuse of market power can at least in Europe be prohibited by competition authorities. That is, according to our model there is no need for a regulation of net neutrality.

Keywords: net neutrality; internet service provider; content provider; blocking; platforms (search for similar items in EconPapers)
JEL-codes: D40 K20 L12 L82 L86 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Working Paper: Net Neutrality and the Incentives (Not) to Exclude Competitors (2014)
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DOI: 10.1515/roe-2015-1010

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