Getting What You Pay for: Analyzing the Net Neutrality Debate

26 Pages Posted: 14 Jan 2008 Last revised: 21 Apr 2013

Mark A Jamison

University of Florida - Warrington College of Business Administration, Public Utility Research Center

Janice Alane Hauge

University of North Texas

Date Written: April 20, 2008

Abstract

We analyze the effects of networks offering and charging for premium transmission service, which is central to the net neutrality debate. We find that when a network provider optimally charges for and provides premium transmission for content providers, innovation is stimulated on the edges of the network and smaller content providers benefit more than do larger content providers. Furthermore, we show that the network provider increases its investment in network capacity when it offers premium transmission without degrading service for content providers that do not purchase the premium service. Also the number of network subscribers increases.

Suggested Citation

Jamison, Mark A and Hauge, Janice Alane, Getting What You Pay for: Analyzing the Net Neutrality Debate (April 20, 2008). TPRC 2007. Available at SSRN: https://ssrn.com/abstract=1081690 or http://dx.doi.org/10.2139/ssrn.1081690

Mark A. Jamison (Contact Author)

University of Florida - Warrington College of Business Administration, Public Utility Research Center ( email )

PO Box 117142
Gainesville, FL 32611
United States
352-392-6148 (Phone)
352-392-7796 (Fax)

HOME PAGE: http://warrington.ufl.edu/purc/facultyinfo.asp?WEBID=1217

Janice Alane Hauge

University of North Texas ( email )

1155 Union Circle #305340
Denton, TX 76203
United States
940-565-4544 (Phone)

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