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Toll Road or Dumb Pipe? Economic Perspectives on Net Neutrality

Author

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  • Lüth Hendrik

    (Helmut-Schmidt-University, Holstenhofweg 85, 22043 Hamburg, Germany)

Abstract

Net neutrality is hotly debated among both scholars and politicians for more than a decade already, but it’s still one of the most prominent topics in telecommunications policy. This paper reviews the recent economic literature on net neutrality following an introductory discussion of relevant features of the market for Internet service provision. In the course of doing so, multiple regulatory regimes are evaluated with respect to their economic impact. Albeit the economic literature highlights some dangers that can evolve from violations of net neutrality, there is little evidence that would justify a rigorous ex-ante regulation.

Suggested Citation

  • Lüth Hendrik, 2015. "Toll Road or Dumb Pipe? Economic Perspectives on Net Neutrality," Review of Economics, De Gruyter, vol. 66(3), pages 303-329, December.
    • Handle: RePEc:lus:reveco:v:66:y:2015:i:3:p:303-329
    DOI: 10.1515/roe-2015-1000
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    References listed on IDEAS

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    More about this item

    Keywords

    net neutrality; two-sided markets; Internet regulation; traffic discrimination; vertical integration; foreclosure;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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