Abstract: I present a model in which firms differing in R&D productivity choose between ambitious research projects, which are socially desirable, and unambitious ones, which are socially undesirable. The patent office must decide how rigorously to examine applications, which affects the...

This paper reviews the small but growing economic literature on network neutrality. It considers a number of possible departures from network neutrality, in particular termination fees, second-degree price discrimination, and vertical foreclosure.

Under strict net neutrality Internet service providers (ISPs) are required to carry data without any differentiation and at no cost to the content provider. We provide a simple framework with a monopoly ISP to evaluate different net neutrality rules. Content differs in its sensitivity to delay....