Economic Scholars' Summary of Economic Literature Regarding Title II Regulation of the Internet

13 Pages Posted: 17 Aug 2017

See all articles by Mark A Jamison

Mark A Jamison

University of Florida - Warrington College of Business Administration, Public Utility Research Center

Michelle Connolly

Duke University - Department of Economics

Gerald R. Faulhaber

University of Pennsylvania - Wharton School

Janice Alane Hauge

University of North Texas

James E. Prieger

Pepperdine University - School of Public Policy

Date Written: July 17, 2017

Abstract

We present the findings of economic research regarding the issues surrounding net neutrality and regulation of the internet under Title II of the Communications Act. Our purpose here is to review what has been demonstrated in the economics literature rather than to advocate particular decisions that we believe the Federal Communications Commission should make. We limit this review to articles that use explicit economic models and that appear in higher-level, peer-reviewed economics journals. Beyond these selection criteria, we do not make evaluations of the relative weight that we might individually place on each publication. Economics research on net neutrality has found that the impacts of regulations depend on the conditions in the marketplace. Under various conditions the regulations can be harmful to consumers, harmful to network providers, harmful to content providers, or hinder investment; but there are also conditions under which opposite effects can occur. Overall, most but not all of the articles we found conclude that regulatory restrictions on which advanced features internet service providers can offer can lower economic efficiency. A notable exception is blocking customer access to content that customers find valuable. Such blocking is generally harmful. Existing literature further suggests that today’s internet service providers do not have economic characteristics similar to those telecommunications providers for whom Title II was written.

Keywords: Net Neutrality, Telecommunications, Regulation

JEL Classification: L51, L96

Suggested Citation

Jamison, Mark A. and Connolly, Michelle and Faulhaber, Gerald R. and Hauge, Janice Alane and Prieger, James E., Economic Scholars' Summary of Economic Literature Regarding Title II Regulation of the Internet (July 17, 2017). Available at SSRN: https://ssrn.com/abstract=3008900 or http://dx.doi.org/10.2139/ssrn.3008900

Mark A. Jamison (Contact Author)

University of Florida - Warrington College of Business Administration, Public Utility Research Center ( email )

PO Box 117142
Gainesville, FL 32611
United States
352-392-6148 (Phone)
352-392-7796 (Fax)

HOME PAGE: http://warrington.ufl.edu/purc/facultyinfo.asp?WEBID=1217

Michelle Connolly

Duke University - Department of Economics ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States
919-660-1819 (Phone)
919-684-8974 (Fax)

Gerald R. Faulhaber

University of Pennsylvania - Wharton School ( email )

Steinberg-Dietrich Hall
Suite 1400
Philadelphia, PA 19104-6372
United States
215-898-7860 (Phone)

Janice Alane Hauge

University of North Texas ( email )

1155 Union Circle #305340
Denton, TX 76203
United States
940-565-4544 (Phone)

James E. Prieger

Pepperdine University - School of Public Policy ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States
3105067150 (Phone)
3105067494 (Fax)

HOME PAGE: http://sites.google.com/a/pepperdine.edu/jprieger/

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