Title: Network neutrality and the evolution of the internet

Authors: Günter Knieps

Addresses: Institute of Transport Economics and Regional Policy, Albert-Ludwigs-Universität, Platz der Alten Synagoge, 79085 Freiburg im Breisgau, Germany

Abstract: In order to create incentives for internet traffic providers, not to discriminate with respect to certain applications on the basis of network capacity requirements, the concept of market driven network neutrality is introduced. Its basic characteristics are that all applications are bearing the opportunity costs of the required traffic capacities. An economic framework for market driven network neutrality in broadband internet is provided, consisting of congestion pricing and quality of service differentiation. However, network neutrality regulation with its reference point of the traditional TCP would result in regulatory micromanagement of traffic network management.

Keywords: broadband internet; network neutrality; quality of service; QoS differentiation; congestion pricing; interclass externality pricing; interconnection agreements; net neutrality; internet regulation; traffic network management.

DOI: 10.1504/IJMNE.2011.042578

International Journal of Management and Network Economics, 2011 Vol.2 No.1, pp.24 - 38

Available online: 17 Sep 2011 *

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