Konferenzbeitrag
Zero-Rating and Network Effects
We consider internet service providers' incentives to zero-rate, i.e. do not count towards data allowances, the consumption of certain services, in the absence of payments from content providers. In a general model with various types of network effects, service substitutes or complements, monopoly and duopoly, we show that ISPs adopt zero-rating and that it increases consumer surplus and total welfare if network effects are strong enough. Capacity investment increases (decreases) with network effects if services are complements (substitutes). Under competition, the decision to zero-rate depends the residual network effect, which includes the impacts of spillovers and brand differentiation.
- Sprache
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Englisch
- Erschienen in
-
Series: 30th European Conference of the International Telecommunications Society (ITS): "Towards a Connected and Automated Society", Helsinki, Finland, 16th-19th June, 2019
- Klassifikation
-
Wirtschaft
Firm Behavior: Theory
Economics of Regulation
Telecommunications
- Thema
-
Zero-rating
Network effects
Net neutrality
Capacity Investment
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hoernig, Steffen
Monteiro, Francisco
- Ereignis
-
Veröffentlichung
- (wer)
-
International Telecommunications Society (ITS)
- (wo)
-
Calgary
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Konferenzbeitrag
Beteiligte
- Hoernig, Steffen
- Monteiro, Francisco
- International Telecommunications Society (ITS)
Entstanden
- 2019