07 Mar 2016Working Paper Summaries

Net Neutrality: A Fast Lane to Understanding the Trade-offs

by Shane Greenstein, Martin Peitz, and Tommaso Valletti

Shane Greenstein and colleagues identify the economic dimensions involved with net neutrality and show that many questions can be informed by simple economic models of the market for internet services.

Author 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.