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Spillovers and Network Neutrality

REGULATION AND THE PERFORMANCE OF COMMUNICATION AND INFORMATION NETWORKS, Gerry Faulhaber, Gary Madden, Jeffrey Petchey, eds., Edward Elgar, Forthcoming

21 Pages Posted: 30 Jun 2010  

Christiaan Hogendorn

Wesleyan University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: June 29, 2010

Abstract

Proposals for network neutrality are usually justified at least in part based on positive spillovers and externalities related to an “open” Internet. Almost everyone would agree that the Internet generates a great many positive benefits throughout the economy, but there is much less agreement as to whether these benefits are “spillovers” or “externalities” in an economic sense. The answer to that question has significant implications for whether regulation is justified and how it should be designed. This essay examines three sources of benefits from the Internet - general purpose technology, network effects, and innovation - and evaluates whether they could in fact be reduced by private, potentially non-neutral behavior by ISPs.

Keywords: network neutrality, externalities, spillovers

JEL Classification: L51, L96

Suggested Citation

Hogendorn, Christiaan, Spillovers and Network Neutrality (June 29, 2010). REGULATION AND THE PERFORMANCE OF COMMUNICATION AND INFORMATION NETWORKS, Gerry Faulhaber, Gary Madden, Jeffrey Petchey, eds., Edward Elgar, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1632491 or http://dx.doi.org/10.2139/ssrn.1632491

Christiaan Hogendorn (Contact Author)

Wesleyan University - Department of Economics ( email )

238 Church Street
Middletown, CT 06459-0007
United States
860-685-2108 (Phone)
860-685-2301 (Fax)

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