Subsidizing Creativity through Network Design
Zero-Pricing and Net Neutrality
Bibliographic Data
| ID | 4029579 |
|---|---|
| Authors | Robin S Lee (New York University, corresponding author), Tim Wu (0000-0001-6444-598X, Columbia University Law School, New York City, New York, and a Fellow at the New America Foundation, Washington, D.C.) |
| Year | 2009 |
| Volume | 23 |
| Issue | 3 |
| Pages | 61-76 |
| Publication date | 2009-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic Perspectives (JOURNAL) |
| Journal identifiers | ISSN: 0895-3309 • E-ISSN: 1944-7965 |
| Publisher | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/jep.23.3.61 |
| OpenAlex | W3122964928 |
| Language | EN |
| Citations received | 14 |
| References cited | 15 |
This paper focuses on the pricing aspect of the "net neutrality" debate-in particular, the de facto ban on fees levied by Internet service providers on content providers to reach users. This "zero-price" rule may prove desirable for several reasons. Using a two-sided market analysis, we suggest that it subsidizes creativity and innovation in new content creation-goals shared by copyright and patent laws. The rule also helps to solve a coordination problem: since Internet service providers do not completely internalize the effects of their own pricing decisions, lack of regulation may lead to even higher fees charged by all. Finally, allowing for such fees runs the risk of creating horizontally differentiated Internet service providers with different libraries of accessible content, thereby foreclosing consumers and leading to Internet fragmentation
Business · Creativity · De facto · Economics · Industrial organization · Internet service provider · Market economy · Microeconomics · Net neutrality · Service provider · Subsidy · The Internet · Computer Science · Copyright and Intellectual Property · Digital Platforms and Economics · ICT Impact and Policies · Law · Marketing
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| Unique citing works | 14 |
|---|---|
| Citations per year | 0,93 |
| Citation span | 2011 - 2024 (14) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 13 |