Network Neutrality Versus Paid Prioritization: Analyzing the Impact on Content Innovation
通过双边市场模型比较网络中立与分组歧视对内容创新的影响,发现中立性下内容创新更繁荣,因为产生了公益创新区和跨边拥塞效应,对当前FCC开放互联网规则辩论有启示。
We examine the link between network neutrality (NN) and content innovation on the Internet by comparing the impact of NN and packet discrimination (PD) regimes on content innovation. We do this in the context of a two‐sided market model that simultaneously considers content provider (CP) and consumer decisions concerning market entry and participation while taking into account consumers’ response to network congestion. We find that content innovation flourishes under NN to a greater degree than under PD due to two effects we uncover: the generation of what we call a pro bono innovation zone in which CPs are able to enter the market without contributing to network provider profits; and the cross‐side congestion effect, a negative network externality wherein higher broadband market coverage levels result in greater congestion for CPs, and increased content results in greater congestion for consumers, taking into account consumers’ strategic response to network congestion. These results have important implications for current public policy debates regarding the Federal Communications Commission's Open Internet Rules.