Lemons on the Edge of the Internet: The Importance of Transparency for Broadband Network Quality

COMMUNICATIONS & STRATEGIES, no. 98, 2nd quarter 2015, p 119

18 Pages Posted: 20 Dec 2015

See all articles by Reza Rajabiun

Reza Rajabiun

Ryerson University

Catherine A. Middleton

Ryerson University - Ted Rogers School of Management

Date Written: April 1, 2015

Abstract

Network performance measurements from OECD countries between 2007 and 2012 document a significant increase in the variability of broadband infrastructure quality, which helps explain growing demand for technologies and policies that counteract information asymmetries between network operators and end users. A cross-country analysis documents the negative association between quality uncertainty and variations in digital infrastructure quality. The analysis suggests public policies and business models that promote market transparency can enhance the efficiency of the broadband access market on the edge of the internet and stimulate incentives for the diffusion of next generation platforms.

Keywords: broadband internet, quality uncertainty, market efficiency, technological change

JEL Classification: L86, L15, M21, K12

Suggested Citation

Rajabiun, Reza and Middleton, Catherine A., Lemons on the Edge of the Internet: The Importance of Transparency for Broadband Network Quality (April 1, 2015). COMMUNICATIONS & STRATEGIES, no. 98, 2nd quarter 2015, p 119, Available at SSRN: https://ssrn.com/abstract=2705449

Reza Rajabiun

Ryerson University ( email )

Ryerson University, 350 Victoria Street, Toronto
Toronto, Ontario M5B 2K3
Canada

Catherine A. Middleton (Contact Author)

Ryerson University - Ted Rogers School of Management ( email )

350 Victoria Street
Toronto, Ontario M5B 2K3
Canada

HOME PAGE: http://www.broadbandresearch.ca

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