Research Seminar 16/03/22: "Net Neutrality and Welfare Effects of Discrimination on Either or Both the Content Side and the User Side" (by Romain Lestage)

Research Seminar Series in Economic Sciences, 2021-2022

 

Speaker: Romain Lestage, Associate Professor at Central University of Finance and Economics

Webpage: https://sites.google.com/view/romain-lestage/home

 

Title: "Net Neutrality and Welfare Effects of Discrimination on Either or Both the Content Side and the User Side"

Date & Time: Wednesday, March 16th, 2022, 15:00 - 16:30  

 

Webex Link: https://uoa.webex.com/uoa/j.php?MTID=m6f2d44769f2375bf2090852c432d9ac6

Url: http://www.econ.uoa.gr/ereynhtika-seminaria-research-seminars.html

 

Abstract:  We study how net neutrality regulation on the content-provider side interacts with net neutrality on the internet-user side. We set up a theoretical model in which deviations from net neutrality take the form of price discrimination triggered either directly by asymmetries across content providers or indirectly by the content preferences of internet users. We show that unconstrained discrimination yields higher welfare than full net neutrality in which discrimination is banned on both sides of the market. However, net neutrality on the user side may dominate unconstrained discrimination. These results are driven by consumption reallocation effects within the content and user sides and by matching effects between them whose direction and relative intensity depend on the balance of the network effects.

 

Organizers: Dimitris Kenourgios, Professor

                      George Dotsis, Assoc. Professor

                      Frago Kourandi, Assist. Professor

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