Nick Economides: Net Neutrality on the Internet

Net Neutrality on the Internet Nicholas Economides Stern School of Business, New York University http://www.stern.nyu.edu/networks/ NET Institute http://www.NETinst.org/ mailto: [email_address] Visiting UC Berkeley

Network Industries: Increasing Returns to Scale in Consumption ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Two-sided Pricing in Vertically Disintegrated Setups ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Interview with Ed Whitacre BusinessWeek November 7, 2005 ,[object Object],[object Object]

But Both Sides Pay for “Transit” on the Internet ,[object Object],[object Object],[object Object]

So What Do AT&T, Verizon and Cable TV Companies Want? ,[object Object],[object Object],[object Object],[object Object]

Two-sided Pricing in the Absence of Net Neutrality ,[object Object],AT&T (Access Network) Google Yahoo MSN … Residential Customers p : subscription price s : AT&T’s fee to content providers

The Internet Was Based ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Six Consequences of Departure from Net Neutrality ,[object Object],[object Object]

Optimal One-sided Regulation in the Presence of Monopoly on the Other Side of the Market ,[object Object],[object Object],[object Object],[object Object]

Six Consequences of Departure from Net Neutrality ,[object Object],[object Object],[object Object]

Six Consequences of Departure from Net Neutrality ,[object Object],[object Object],[object Object],[object Object]

Abolition of Net Neutrality Raises Both Horizontal and Vertical Antitrust Issues ,[object Object],[object Object],[object Object]

Horizontal Effects Continued ,[object Object],[object Object],[object Object]

There is a Variety of Potentially Anti-competitive Vertical Effects ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Net Neutrality Allows for Intelligence and Innovation at the Edge of the Network ,[object Object],[object Object]

Should We Intervene or Wait Instead for Antitrust Suits? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Conclusions ,[object Object],[object Object]

Nick Economides: Net Neutrality on the Internet

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Nick Economides: Net Neutrality on the Internet