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Network Neutrality and the Evolution of the Internet

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  • Knieps, Günter

Abstract

In order to create incentives for Internet traffic providers not to discriminate with respect to certain applications on the basis of network capacity requirements, the concept of market driven network neutrality is introduced. Its basic characteristics are that all applications are bearing the opportunity costs of the required traffic capacities. An economic framework for market driven network neutrality in broadband Internet is provided, consisting of congestion pricing and quality of service differentiation. However, network neutrality regulation with its reference point of the traditional TCP would result in regulatory micromanagement of traffic network management.

Suggested Citation

  • Knieps, Günter, 2010. "Network Neutrality and the Evolution of the Internet," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 19, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse10:19
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    File URL: https://www.econstor.eu/bitstream/10419/44343/1/19_knieps.pdf
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    References listed on IDEAS

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    1. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    2. Jacques Crémer & Patrick Rey & Jean Tirole, 2000. "Connectivity in the Commercial Internet," Journal of Industrial Economics, Wiley Blackwell, vol. 48(4), pages 433-472, December.
    3. Jean-Jacques Laffont, 2001. "Internet Peering," American Economic Review, American Economic Association, vol. 91(2), pages 287-291, May.
    4. Eduardo A. Haddad & Jaime Bonet & Geoffrey J. D. Hewings, 2023. "Introduction and Overview," Advances in Spatial Science, in: Eduardo A. Haddad & Jaime Bonet & Geoffrey J. D. Hewings (ed.), The Colombian Economy and Its Regional Structural Challenges, chapter 0, pages 1-16, Springer.
    5. Schwartz Marius & Weiser Philip J., 2009. "Introduction to a Special Issue on Network Neutrality," Review of Network Economics, De Gruyter, vol. 8(1), pages 1-12, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of Internet traffic quality regulation," Discussion Papers 136, University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Knieps, Günter, 2011. "Market driven network neutrality and the fallacies of internet traffic quality regulation," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52149, International Telecommunications Society (ITS).
    3. Knieps, Günter, 2010. "Network neutrality and the evolution of the internet," Discussion Papers 135, University of Freiburg, Institute for Transport Economics and Regional Policy.

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    More about this item

    Keywords

    Broadband Internet; network neutrality; quality of service differentiation; congestion pricing; interclass externality pricing; interconnection agreements;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • 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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