Transparency Regulation as a Remedy for Network Neutrality Concerns: Experimental Results

42 Pages Posted: 19 Nov 2010 Last revised: 24 Dec 2013

See all articles by Jasper P. Sluijs

Jasper P. Sluijs

Utrecht University School of Law

Florian Schuett

Tilburg Law and Economics Center (TILEC); Tilburg University - Center and Faculty of Economics and Business Administration

Bastian Henze

Tilburg University - Department of Economics - CentER & TILEC

Date Written: November 15, 2010

Abstract

We present a research project in experimental law and economics about the effects of new transparency provisions in European telecommunications law on Internet Service Providers (ISPs) and end-users in broadband markets, with implications for the debate on network neutrality. Our experiment evaluates the effects of increased transparency about the actual quality of broadband Internet. We compare four treatments in which end-users have different amounts of information about broadband quality. We conclude that (1) more information about the quality of a broadband connection leads to higher total surplus and higher end-user surplus; (2) quality provided by ISPs increases with the level of transparency; (3) quality and efficiency are marginally higher when full information about quality is only available to some end-users, than when all end-users have imperfect information about quality. To these findings we attach a number of policy-related conclusions.

Keywords: Telecommunications Regulation, Transparency, Experimental Law and Economics, Network Neutrality, Consumer Protection

JEL Classification: C91, L13, L15, K23

Suggested Citation

Sluijs, Jasper P. and Schuett, Florian and Henze, Bastian, Transparency Regulation as a Remedy for Network Neutrality Concerns: Experimental Results (November 15, 2010). TILEC Discussion Paper No. 2010-039. Available at SSRN: https://ssrn.com/abstract=1709268 or http://dx.doi.org/10.2139/ssrn.1709268

Jasper P. Sluijs (Contact Author)

Utrecht University School of Law ( email )

Janskerkhof 3
Utrecht, 3512 BK
Netherlands

Florian Schuett

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Tilburg University - Center and Faculty of Economics and Business Administration ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Bastian Henze

Tilburg University - Department of Economics - CentER & TILEC ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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