Net neutrality and innovation at the core and at the edge

Carlo Reggiani, Tommaso Valletti

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How would abandoning Internet net neutrality affect content providers that have different sizes? We model an Internet broadband provider that can offer a different quality of service (priority) to heterogeneous content providers. Internet users can potentially access all content, although they browse and click ads with different probabilities. Net neutrality regulation effectively protects innovation done at the edge by small content providers. Prioritization, instead, increases both infrastructure core investment and welfare only if it sufficiently stimulates innovation from the large content provider.
Original languageEnglish
Article number3
Pages (from-to)16
Number of pages27
JournalInternational Journal of Industrial Organization
Early online date11 Jan 2016
Publication statusPublished - 1 Mar 2016


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