Asymmetric Neutrality Regulation and Innovation at the Edges: Fixed vs. Mobile Networks

Arbeitspapier

We study how net neutrality regulations affect a high-bandwidth content provider's (CP) investment incentives in quality of services (QoS). We find that the effects crucially depend on network capacity levels. With limited capacity, as in mobile networks, prioritized delivery services are complementary to the CP's investments and can facilitate entry of congestion-sensitive content; however, this creates more congestion for other existing content. By contrast, if capacity is relatively large, as in fixed-line networks, prioritized services reduce QoS investment as they become substitutes, but improves traffic management. These results are qualitatively robust to the extension of the ISP's endogenous choice of network capacity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4974

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: General ; Regulation and Business Law: General ; Market Structure, Firm Strategy, and Market Performance: General ; Regulation and Industrial Policy: General ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
• Subject: net neutrality ; asymmetric regulation ; quality of service ; investment incentives ; queuing ; congestion ; mobile/fixed networks

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Choi, Jay Pil ; Jeon, Doh-Shin ; Kim, Byung-Cheol
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/103084
• Last update: 10.03.2025, 11:45 AM CET