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Competing One-Way Essential Complements : the Forgotten Side of the Net Neutrality Story}
Broos, Sébastien; Gautier, Axel
2014Connected Life 2014
 

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Keywords :
net neutrality; foreclosure; one-way essential complements
Abstract :
[en] We examine the incentives of an internet service provider (ISP) to break net neutrality by excluding internet applications competing with its own products, a typical example being the exclusion of VoIP applications by a telecom company offering internet and voice services. We show that exclusion is not a concern when the ISP is a monopoly because it can extract the additional surplus created by the application through price rebalancing. By contrast, when ISP’s compete, in an attempt to differentiate, only one ISP will offer the app. Applying a no-exclusion rule in this case can lead to monopoly.
Disciplines :
Microeconomics
Author, co-author :
Broos, Sébastien ;  Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie industrielle
Gautier, Axel  ;  Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie industrielle
Language :
English
Title :
Competing One-Way Essential Complements : the Forgotten Side of the Net Neutrality Story}
Publication date :
12 June 2014
Event name :
Connected Life 2014
Event organizer :
Oxford Internet Institute, Balliol College, Oxford University
Event place :
Oxford, United Kingdom
Event date :
12 juin 2014
Audience :
International
Available on ORBi :
since 07 August 2014

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