Net Neutrality and Open Access Regulation on the Internet
Sue H. Mialon
August 1, 2013
We analyze the welfare implication of net neutrality in a new platform competition model that highlights the importance of content market structure. Net neutrality as open access regulation imposes an upper bound on the price of a monopoly input – the last-mile access to consumers – provided by local Internet service providers. Net neutrality improves welfare if it induces greater consumer demand for the Internet. Consumer demand is likely to increase if it is relatively less elastic than the participation by content providers.
Number of Pages in PDF File: 30
Keywords: Internet, open access regulation, net neutrality, two-sided markets
JEL Classification: L51, K23, D43working papers series
Date posted: January 24, 2012 ; Last revised: September 26, 2013
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