A Complex Systems Model of Industry Concentration and Broadband Infrastructure Investment

21 Pages Posted: 16 Jan 2012

See all articles by Kurtis DeMaagd

Kurtis DeMaagd

Michigan State University

Erik D. Goodman

Michigan State University

Johannes M. Bauer

Michigan State University-Department of Media and Information

Kendall J. Koning

Michigan State University - College of Communication Arts and Sciences

Tithi Chattopadhyay

affiliation not provided to SSRN

Nicolas Friederici

University of Oxford - Oxford Internet Institute

Date Written: September 24, 2011

Abstract

As the United States faces challenges in developing and deploying next generation broadband technologies, it has reopened the debates regarding the best way to organize the telecommunication industry to achieve these goals. Yet this requires organizing network service providers, application providers, technology developers, and advertisers, each of whom are competing to further their own self interests which may not necessarily align with the interests of the consumers. Given the challenges of modeling these interactions, we have chosen a complex adaptive system approach to modeling the provision of broadband access and the corresponding applications, content, and consumption. The specific approach is a combination of multi‐agent simulation and genetic programming. Each type of agent in the marketplace co‐evolves its strategy to respond to the actions taken by other agents. Through this process, each agent searches for a good response to the other actions, improving their individual welfare within the constraints of the actions taken by other agents. The processes show that in general competition creates the best results for consumers. However, in cases where the cost of building the infrastructure is high, the consumers may be better served by a monopolist.

Suggested Citation

DeMaagd, Kurtis and Goodman, Erik D. and Bauer, Johannes M. and Koning, Kendall J. and Chattopadhyay, Tithi and Friederici, Nicolas, A Complex Systems Model of Industry Concentration and Broadband Infrastructure Investment (September 24, 2011). TPRC 2011. Available at SSRN: https://ssrn.com/abstract=1985745

Kurtis DeMaagd (Contact Author)

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Erik D. Goodman

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Johannes M. Bauer

Michigan State University-Department of Media and Information ( email )

409 Communication Arts Building
East Lansing, MI 48824-1212
United States
517-355-8372 (Phone)
517-355-1292 (Fax)

HOME PAGE: http://www.msu.edu/~bauerj

Kendall J. Koning

Michigan State University - College of Communication Arts and Sciences ( email )

East Lansing, MI 48824
United States

Tithi Chattopadhyay

affiliation not provided to SSRN ( email )

Nicolas Friederici

University of Oxford - Oxford Internet Institute ( email )

1 St. Giles
University of Oxford
Oxford OX1 3PG Oxfordshire, Oxfordshire OX1 3JS
United Kingdom

HOME PAGE: http://https://www.oii.ox.ac.uk/people/nicolas-friederici/

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