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Lemons on the Edge of the Internet: The Importance of Transparency for Broadband Network Quality

Author

Listed:
  • Reza RAJABIUN

    (Ryerson University, Toronto, Canada)

  • Catherine MIDDLETON

    (Ryerson University, Toronto, Canada)

Abstract

Network performance measurements from OECD countries between 2007 and 2012 document a significant increase in the variability of broadband infrastructure quality, which helps explain growing demand for technologies and policies that counteract information asymmetries between network operators and end users. A cross-country analysis documents the negative association between quality uncertainty and variations in digital infrastructure quality. The analysis suggests public policies and business models that promote market transparency can enhance the efficiency of the broadband access market on the edge of the internet and stimulate incentives for the diffusion of next generation platforms.

Suggested Citation

  • Reza RAJABIUN & Catherine MIDDLETON, 2015. "Lemons on the Edge of the Internet: The Importance of Transparency for Broadband Network Quality," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(98), pages 119-136, 2nd quart.
    • Handle: RePEc:idt:journl:cs9805
    as

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    File URL: http://repec.idate.org/RePEc/idt/journl/CS9805/CS98_RAJABIUN_MIDDLETON.pdf
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    References listed on IDEAS

    as
    1. Sluijs, Jasper P. & Schuett, Florian & Henze, Bastian, 2011. "Transparency regulation in broadband markets: Lessons from experimental research," Telecommunications Policy, Elsevier, vol. 35(7), pages 592-602, August.
    2. Li, Yung-Ming & Lee, Yi-Lin, 2010. "Pricing peer-produced services: Quality, capacity, and competition issues," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1658-1668, December.
    3. Belloc, Filippo & Nicita, Antonio & Alessandra Rossi, Maria, 2012. "Whither policy design for broadband penetration? Evidence from 30 OECD countries," Telecommunications Policy, Elsevier, vol. 36(5), pages 382-398.
    4. Waverman, Leonard & Koutroumpis, Pantelis, 2011. "Benchmarking telecoms regulation - The Telecommunications Regulatory Governance Index (TRGI)," Telecommunications Policy, Elsevier, vol. 35(5), pages 450-468, June.
    5. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Rajabiun, Reza & Middleton, Catherine, 2018. "Strategic choice and broadband divergence in the transition to next generation networks: Evidence from Canada and the U.S," Telecommunications Policy, Elsevier, vol. 42(1), pages 37-50.
    2. Abeliansky, Ana L. & Hilbert, Martin, 2017. "Digital technology and international trade: Is it the quantity of subscriptions or the quality of data speed that matters?," Telecommunications Policy, Elsevier, vol. 41(1), pages 35-48.

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    More about this item

    Keywords

    broadband internet; quality uncertainty; market efficiency; technological change;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

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