IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Welfare Implications of Deviation from Network Neutrality: A Price Discrimination Application

Welfare Implications of Deviation from Network Neutrality: A Price Discrimination Application
View Sample PDF
Author(s): Emin Koksal (Bahcesehir University, Turkey)
Copyright: 2012
Pages: 24
Source title: Research, Practice, and Educational Advancements in Telecommunications and Networking
Source Author(s)/Editor(s): Michael Bartolacci (Penn State University - Berks, USA)and Steven R. Powell (California State Polytechnic University - Pomona, USA)
DOI: 10.4018/978-1-4666-0050-8.ch006

Purchase

View Welfare Implications of Deviation from Network Neutrality: A Price Discrimination Application on the publisher's website for pricing and purchasing information.

Abstract

This paper investigates how incentives of network operators to deviate from neutrality may create social costs or benefits in different market structures. The deviation from network neutrality is a general form of discrimination based on charging different prices for non-affiliated content and application providers. In this paper, deviation from network neutrality is formulated as a form of vertical foreclosure. While constructing the model two-sided nature of the internet service, the providing market is considered. The author found that, although monopoly network operators have no incentive to deviate from neutrality, the duopoly network operators have this incentive. Welfare analysis suggests destructive results for almost all participants, hence the total surplus in both market structures. In addition, the analysis for the degree of integration between the network operators and their affiliated content and application providers, suggest some policy proposals to discourage their degree of integration.

Related Content

Taoufik Benyetho, Larbi El Abdellaoui, Abdelali Tajmouati, Abdelwahed Tribak, Mohamed Latrach. © 2017. 33 pages.
Naveen Jaglan, Samir Dev Gupta, Binod Kumar Kanaujia, Shweta Srivastava. © 2017. 51 pages.
Anirban Karmakar. © 2017. 30 pages.
Hassan Elmajid, Jaouad Terhzaz, Hassan Ammor. © 2017. 31 pages.
Salvatore Caorsi, Claudio Lenzi. © 2017. 23 pages.
Abdessamed Chinig, Ahmed Errkik, Abdelali Tajmouati, Hamid Bennis, Jamal Zbitou, Mohamed Latrach. © 2017. 35 pages.
Fouad Aytouna, Mohamed Aghoutane, Naima Amar Touhami, Mohamed Latrach. © 2017. 39 pages.
Body Bottom