Net Neutrality in the Content Provision and Internet Service Provision Markets
Relaxing net neutrality in the form of introducing termination fees and its welfare effects are considered in a model of imperfect complements. The equilibrium of the game between the internet service provider (ISP) and the content provider (CP) yields welfare-maximizing termination fees that depend...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2022-12-01
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| Series: | İstanbul İktisat Dergisi |
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| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/C8807D345A3348E0860A68E970D4702C |
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| author | Turgut Erkul Sencer Ecer |
| author_facet | Turgut Erkul Sencer Ecer |
| author_sort | Turgut Erkul |
| collection | DOAJ |
| description | Relaxing net neutrality in the form of introducing termination fees and its welfare effects are considered in a model of imperfect complements. The equilibrium of the game between the internet service provider (ISP) and the content provider (CP) yields welfare-maximizing termination fees that depend on the relative size of the ISP’s and the CP’s own-price effects and the cross-price effects. Only when the ISP’s own price effect is relatively high compared to that of the CP’s, along with high cross price effects, such a fee should be allowed. On the other hand, when the CP’s own price effect is relatively high compared to that of the ISP’s, along with high cross price effects, mergers are expected and are likely not harmful to social welfare. Telecommunication regulators may find the results useful in their net neutrality decisions. |
| format | Article |
| id | doaj-art-82c3cfc2152c4a349f0d165f3a1bae0d |
| institution | OA Journals |
| issn | 2602-3954 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | İstanbul İktisat Dergisi |
| spelling | doaj-art-82c3cfc2152c4a349f0d165f3a1bae0d2025-08-20T02:28:28ZengIstanbul University Pressİstanbul İktisat Dergisi2602-39542022-12-0172268972410.26650/ISTJECON2022-1113428123456Net Neutrality in the Content Provision and Internet Service Provision MarketsTurgut Erkul0https://orcid.org/0000-0001-8819-3297Sencer Ecer1https://orcid.org/0000-0003-2956-2990İstanbul Teknik Üniversitesi, İstanbul, Türkiyeİstanbul Teknik Üniversitesi, İstanbul, TürkiyeRelaxing net neutrality in the form of introducing termination fees and its welfare effects are considered in a model of imperfect complements. The equilibrium of the game between the internet service provider (ISP) and the content provider (CP) yields welfare-maximizing termination fees that depend on the relative size of the ISP’s and the CP’s own-price effects and the cross-price effects. Only when the ISP’s own price effect is relatively high compared to that of the CP’s, along with high cross price effects, such a fee should be allowed. On the other hand, when the CP’s own price effect is relatively high compared to that of the ISP’s, along with high cross price effects, mergers are expected and are likely not harmful to social welfare. Telecommunication regulators may find the results useful in their net neutrality decisions.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/C8807D345A3348E0860A68E970D4702Cnet neutralitytermination feewaterbed effect |
| spellingShingle | Turgut Erkul Sencer Ecer Net Neutrality in the Content Provision and Internet Service Provision Markets İstanbul İktisat Dergisi net neutrality termination fee waterbed effect |
| title | Net Neutrality in the Content Provision and Internet Service Provision Markets |
| title_full | Net Neutrality in the Content Provision and Internet Service Provision Markets |
| title_fullStr | Net Neutrality in the Content Provision and Internet Service Provision Markets |
| title_full_unstemmed | Net Neutrality in the Content Provision and Internet Service Provision Markets |
| title_short | Net Neutrality in the Content Provision and Internet Service Provision Markets |
| title_sort | net neutrality in the content provision and internet service provision markets |
| topic | net neutrality termination fee waterbed effect |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/C8807D345A3348E0860A68E970D4702C |
| work_keys_str_mv | AT turguterkul netneutralityinthecontentprovisionandinternetserviceprovisionmarkets AT sencerecer netneutralityinthecontentprovisionandinternetserviceprovisionmarkets |