net neutrality and competition scott wallsten senior fellow
DESCRIPTION
Net Neutrality and Competition Scott Wallsten Senior Fellow Director, Communications Policy Studies Progress & Freedom Foundation [email protected] [email protected]. The Internet. Multi-sided market. merchants. consumers. The Internet. Multi-sided market + network effects. Consumers. - PowerPoint PPT PresentationTRANSCRIPT
Net Neutrality and Competition
Scott Wallsten
Senior FellowDirector, Communications Policy Studies
Progress & Freedom Foundation
[email protected]@wallsten.net
The Internet
Multi-sided market
merchants consumers
Multi-sided market + network effects
Consumers
Content
The Internet
Mandatory net neutrality = price regulation
Market failure?
Optimal pricing unknown.
Innovation in content and infrastructure.
Anticompetitive discrimination?
• Not in providers’ interests.
• Not with adequate competition.
• Antitrust, not regulatory, issue.
Effects on consumers?
• If infrastructure charges content providers…consumer prices DECREASE!
• In a two-sided market, if prices increase for one side they decrease for the other.
COMPETITION
Optimal pricing unknown
Content AND infrastructure important
Net neutrality = price regulation
Focus on competition
Conclusions