Working Paper: NBER ID: w21950
Authors: Shane Greenstein; Martin Peitz; Tommaso Valletti
Abstract: The “net neutrality” principle has triggered a heated debate and advocates have proposed policy interventions. In this paper, we provide perspective by framing issues in terms of the positive economic factors at work. We stress the incentives of market participants, and highlight the economic conflicts behind the arguments put forward by the different parties. We also identify several key open questions.
Keywords: net neutrality; internet service providers; content providers; economic trade-offs
JEL Codes: K2; L86; L88; L96
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Comcast charges Netflix a termination fee (D49) | total price paid by end-users does not alter (D41) |
| increase in termination fees for content providers (D49) | decrease in subscription fees for end-users (D49) |
| termination fees charged by ISPs (L96) | end-user prices and ISP profits remain unchanged (D49) |