Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102313
Authors: 
Dewenter, Ralf
Rösch, Jürgen
Year of Publication: 
2014
Series/Report no.: 
Diskussionspapier, Helmut-Schmidt-Universität, Fächergruppe Volkswirtschaftslehre 149
Abstract: 
This paper analyses the incentives of a vertical integrated Internet service provider (ISP) to block competitors from content markets. Using a simple model we find that the ISP does not block competing content providers as long as the contents are differentiated sufficiently. Exclusion only takes place when the competitor offers perfect homogeneous content and the ISP has a local monopoly over its Internet access customers or if network effects are strong. In this case, however, the abuse of market power can at least in Europe be prohibited by competition authorities. That is, according to our model there is no need for a regulation of net neutrality.
Subjects: 
net neutrality
competition
Internet service providers
JEL: 
L12
L82
L86
K20
D40
Document Type: 
Working Paper

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