Economic Impact of Content Delivery Networks on the Net Neutrality Debate

30 Pages Posted: 24 Jun 2019

See all articles by Swagatam Sinha

Swagatam Sinha

University of Glasgow; Center for Law & Economics

Date Written: Mar 24, 2019


This paper analyses the impact of the entry of a Content Delivery Network(CDN) on network neutrality and innovation, when the incumbent provider is a monopoly Internet Service Provider (ISP) in a two-sided platform market. We find that in the presence of heterogeneous consumers and consumer service providers (CSP), entry of a CDN leads to increased levels of innovation, measured by the number of content providers in the market. Additionally, consumer utility and number of consumers also increases, but price discrimination in the data transfer service becomes prominent - which leads to failure of net neutrality. These findings are in line with several recent trends in high bandwidth data services as well as the CDN marketplace.

Keywords: Content Delivery Networks, Net Neutrality, Two sided platforms

Suggested Citation

Sinha, Swagatam, Economic Impact of Content Delivery Networks on the Net Neutrality Debate (Mar 24, 2019). Available at SSRN: or

Swagatam Sinha (Contact Author)

University of Glasgow ( email )

Adam Smith Business School
Glasgow, Scotland G12 8LE
United Kingdom

Center for Law & Economics ( email )

Haldeneggsteig 4
Zurich, Zurich 8006

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