Market Structure and Broadband Internet Quality

32 Pages Posted: 1 May 2017

See all articles by Gabor Molnar

Gabor Molnar

University of Colorado at Boulder

Scott Savage

University of Colorado at Boulder - Department of Economics

Date Written: March 2017

Abstract

This paper investigates the effects of the number of firms and their product‐type on broadband Internet quality. We estimate a model that relates the actual speeds delivered, in census block groups to the number of wireline and wireless internet service providers (ISP's), cost and demand conditions, and correction terms for the endogeneity of market structure. Model estimates show four main findings. Wireline speeds are often higher in markets with two or more wireline ISP's than with a single wireline ISP. Excluding the correction terms from the analysis understates this effect. Increases in wireline speeds are larger in the upstream direction, and there is no relationship between wireline speeds and the number of wireless ISP's.

Suggested Citation

Molnar, Gabor and Savage, Scott, Market Structure and Broadband Internet Quality (March 2017). The Journal of Industrial Economics, Vol. 65, Issue 1, pp. 73-104, 2017. Available at SSRN: https://ssrn.com/abstract=2960351 or http://dx.doi.org/10.1111/joie.12106

Gabor Molnar (Contact Author)

University of Colorado at Boulder ( email )

University of Colorado Boulder
Boulder, CO 80309-0530
United States

Scott Savage

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309
United States
303-735-1165 (Phone)
303-492-1112 (Fax)

HOME PAGE: http://holiday.colorado.edu/savages/

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