Investment in Two-Sided Markets and the Net Neutrality Debate

被引:41
|
作者
Njoroge, Paul [1 ]
Ozdaglar, Asuman [1 ]
Stier-Moses, Nicolas E. [2 ,3 ]
Weintraub, Gabriel Y. [4 ,5 ]
机构
[1] MIT, Lab Informat Decis Syst, Cambridge, MA 02139 USA
[2] Columbia Business Sch, New York, NY 10027 USA
[3] Univ Torcuato Di Tella, Buenos Aires, DF, Argentina
[4] Consejo Nacl Invest Cient & Tecn, RA-1033 Buenos Aires, DF, Argentina
[5] Columbia Business Sch, Risk & Operat Div, New York, NY USA
关键词
investments; net neutrality; two-sided markets; NETWORK NEUTRALITY; PRICE-COMPETITION; INCENTIVES; ECONOMICS; CONGESTION; INTERNET; DESIGN;
D O I
10.1515/rne-2012-0017
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper develops a game-theoretic model based on a two-sided market framework to compare Internet service providers' (ISPs) investment incentives, content providers' (CPs) participation, and social welfare between neutral and non-neutral network regimes. We find that ISPs' investments are driven by the trade-off between softening consumer price competition and increasing revenues from CPs. Specifically, investments are higher in the non-neutral regime because it is easier to extract revenue through appropriate CP pricing. On the other hand, participation of CPs may be reduced in a non-neutral network due to higher prices. The net impact of non-neutrality on social welfare is determined by which of these two effects is dominant. Overall, we find that the non-neutral network is always welfare superior in a "walled-gardens" model, while the neutral network is superior in a "priority lanes" model when CP-quality heterogeneity is large. These results provide useful insights that inform the net-neutrality debate.
引用
收藏
页码:355 / 402
页数:48
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