Working Paper No. 890

Network Neutrality and Network Management Regulation: Quality of Service, Price Discrimination, and Exclusive Contracts

Published: December 5, 2011Pages: 28Keywords: Network neutrality; Internet price discrimination; Exclusivity; Quality of Service; Network management; Congestion; AT&T; Verizon; GoogleJEL-codes: C63; D40; D42; D43; L10; L12; L13
Published version

Network Neutrality and Network Management Regulation: Quality of Service, Price Discrimination, and Exclusive Contracts Nicholas Economides and Joacim Tåg


We compare four approaches to network neutrality and network management regulation in a two-sided market model: (i) no variations in Quality of Service and no price discrimination; (ii) variations in Quality of Service but no price discrimination; (iii) variations in Quality of Service and price discrimination but no exclusive contracts; and (iv) no regulation: the network operator can sell exclusive rights to content providers. We compare the equilibrium outcomes explicitly accounting for dynamic incentives to invest in improving the Quality of Service offered to each content provider. We provide a ranking Quality of Service and network operator profits across regimes.

Joacim Tåg

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Ph: +46 8 665 4524
joacim.tag@ifn.se

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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