Network neutrality and congestion sensitive content providers: Implications for content variety, broadband investment and regulation

Jan Krämer and Lukas Wiewiorra
Authors registered in the RePEc Author Service: Jan Krämer ()

MPRA Paper from University Library of Munich, Germany

Abstract: We study departures from network neutrality through implementing a Quality of Service tiering regime in which an ISP charges for prioritization on a non-discriminatory basis. We find that Quality of Service tiering may be more efficient in the short run, because it better allocates the existing network capacity, and in the long run, because it provides higher investment incentives due to the increased demand for priority services by the entry of new congestion sensitive content providers. Which network regime is the most efficient depends on the distribution of congestion sensitivity among content providers, but a guideline is that the regime that provides higher incentives for infrastructure investments is more efficient in the long run.

Keywords: Telecommunications; Internet; Net Neutrality; Network Congestion; Two-Sided Market; Quality of Service; Innovation; Investment; Regulation; Internet Freedom Preservation Act (search for similar items in EconPapers)
JEL-codes: D4 L5 L96 (search for similar items in EconPapers)
Date: 2009-09-05, Revised 2012-01-15
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (72)

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Related works:
Journal Article: Network Neutrality and Congestion Sensitive Content Providers: Implications for Content Variety, Broadband Investment, and Regulation (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:42519

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