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PUBLIC MARKS from oseres with tag netneutrality

2015

Net neutrality: Goals and challenges | VOX, CEPR’s Policy Portal

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an switch to another. The difficulty with this argument is that it presumes that consumers will not want the ISP to engage in such discrimination. However, that is not entirely clear. This is because, in competition with one another for consumers, ISPs want to offer consumers the best deal. If engaging in content-based price discrimination allows ISPs to transfer rents from content providers to themselves, ISP competition will ensure those rents flow back to consumers. Hence, an ISP may become the consumer’s agent in exercising monopoly power, and so content providers may still be subject to hold-up. In this situation, strong net neutrality may short-circuit that flow of rents.

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