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Free Internet Access and Regulation: A Note

Datta, Bipasa and Dixon, Huw David 2003. Free Internet Access and Regulation: A Note. Journal of Institutional and Theoretical Economics (JITE) / Zeitschrift für die gesamte Staatswissenschaft 159 (3) , pp. 594-598.

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We consider the effect of the regulation of telephony on Haan's [2001] analysis of the economics of free Internet access. Haan considers an unregulated market, and finds that free Internet access is compatible with an efficient outcome and avoids the double marginalization problem. We find that if there is binding pricecap regulation, then free Internet access is never efficient: ISP access charges will be strictly positive. This suggests that either price-cap regulation is nonbinding in the ISP access market, or some other explanation is required.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HE Transportation and Communications
T Technology > T Technology (General)
Publisher: Mohr Siebeck
ISSN: 0932-4569
Last Modified: 04 Jun 2017 04:28

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