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
Date Written: April 1, 2015
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: Suggested Citation