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This paper evaluates the effectiveness of several pricing rules intended to promote entry into a network industry dominated by an incumbent carrier. Drawing on the work of Cournot and Hotelling, we develop a model of competition between two interconnected networks. In a symmetric equilibrium,...
Persistent link: https://www.econbiz.de/10014027369
This paper theoretically analyzes the role of reference prices on competition and welfare in a context of a circular city model with free entry and reference prices, in which paying market prices above a reference negatively affects the utility of consumers. Agents interact in a three-stage...
Persistent link: https://www.econbiz.de/10013175014
There can be no doubt that the FANG companies – Facebook, Amazon, Netflix and Google, as well as Twitter – have transformed society since their emergence. Like all social transformations, the changes wrought by their services have had ripple effects that are both positive and negative. On...
Persistent link: https://www.econbiz.de/10012010582
We discuss network neutrality regulation of the Internet in the context of a two-sided market model. Platforms sell … regulation (requiring zero fees to content providers): there exist parameter ranges for which network neutrality regulation … content providers. However, for other parameter values, network neutrality regulation can decrease total surplus. Extending …
Persistent link: https://www.econbiz.de/10014048298
We discuss network neutrality regulation of the Internet in the context of a two-sided market model. Platforms sell … regulation (requiring zero fees to content providers): there exist parameter ranges for which network neutrality regulation … content providers. However, for other parameter values, network neutrality regulation can decrease total surplus. Extending …
Persistent link: https://www.econbiz.de/10014044110
Persistent link: https://www.econbiz.de/10000958871
This paper evaluates the effectiveness of several pricing rules intended to promote entry into a network industry dominated by an incumbent carrier. Drawing on the work of Cournot and Hotelling, we develop a model of competition between two interconnected networks. In a symmetric equilibrium,...
Persistent link: https://www.econbiz.de/10013095138
We correct and extend the results of Gans (2015) regarding the effects of net neutrality regulation on equilibrium …
Persistent link: https://www.econbiz.de/10011547557
Pricing of Internet access has been characterized by two properties: Parties are directly billed only by the Internet service provider (ISP) through which they connect to the Internet. Pricing, moreover, is not contingent on the type of content being transmitted. These properties define a regime...
Persistent link: https://www.econbiz.de/10014188272
This paper studies regulatory policy interventions aimed at protecting sticky consumers who are exposed to exploitation. We model heterogeneous consumer switching costs alongside asymmetric market shares. This setting encompasses many markets in which established firms are challenged by new...
Persistent link: https://www.econbiz.de/10012583369