Net neutrality, business models, and internet interconnection

Jay Pil Choi, Doh Shin Jeon, Byung Cheol Kim

Research output: Contribution to journalArticle

20 Citations (Scopus)

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 nonneutral 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.

Original languageEnglish
Pages (from-to)104-141
Number of pages38
JournalAmerican Economic Journal: Microeconomics
Volume7
Issue number3
DOIs
Publication statusPublished - 2015 Jan 1

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World Wide Web
Interconnection
Business model
Net neutrality
Price discrimination
ISP/Internet service provider
Two-sided markets
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All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Cite this

Choi, Jay Pil ; Jeon, Doh Shin ; Kim, Byung Cheol. / Net neutrality, business models, and internet interconnection. In: American Economic Journal: Microeconomics. 2015 ; Vol. 7, No. 3. pp. 104-141.
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Net neutrality, business models, and internet interconnection. / Choi, Jay Pil; Jeon, Doh Shin; Kim, Byung Cheol.

In: American Economic Journal: Microeconomics, Vol. 7, No. 3, 01.01.2015, p. 104-141.

Research output: Contribution to journalArticle

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