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Price discrimination of ott providers under duopolistic competition and multi-dimmesional product differentiation in retail broadband access

Author

Listed:
  • José Marino García García
  • Aurelia Valiño Castro
  • A. Jesús Sánchez Fuentes

Abstract

Network neutrality regulation prevents price discrimination from Access Providers to Content Providers and product differentiation in terms of connection quality in the retail broadband access market. This paper analyzes the economic implications of price discrimination under duopolistic competition and multi-dimensional product differentiation in retail internet access using a sequential-moves game theoretic model. Under this framework, we discuss the impact of product differentiation and price discrimination on social welfare, and offer systematic simulations using feasible ranges for parameters value to help discern the impact of departing from network neutrality regulation on social welfare.

Suggested Citation

  • José Marino García García & Aurelia Valiño Castro & A. Jesús Sánchez Fuentes, 2016. "Price discrimination of ott providers under duopolistic competition and multi-dimmesional product differentiation in retail broadband access," Working Papers. Collection A: Public economics, governance and decentralization 1607, Universidade de Vigo, GEN - Governance and Economics research Network.
    • Handle: RePEc:gov:wpaper:1607
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    File URL: http://infogen.webs.uvigo.es/WP/WP1607.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    network neutrality; two sided markets; price discrimination; product differentiation; queuing theory; network congestion; duopoly; competition policy.;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • 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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