Zero-rating and network effects

Detalhes bibliográficos
Autor(a) principal: Hoernig, Steffen
Data de Publicação: 2020
Outros Autores: Monteiro, Francisco
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/92736
Resumo: We consider internet service providers’ incentives to zero-rate, i.e. to not count the usage of certain services towards data allowances, in the absence of payments from content providers. We show that zero-rating is adopted if and only if it strongly increases subscriptions. For this it is necessary that participation (as opposed to usage) network effects are strong enough and if zero-rating offers raise expectations about other subscribers’ usage. Zero-rating then also maximizes total welfare.
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spelling Zero-rating and network effectsNet neutralityNetwork effectsZero-ratingFinanceEconomics and EconometricsWe consider internet service providers’ incentives to zero-rate, i.e. to not count the usage of certain services towards data allowances, in the absence of payments from content providers. We show that zero-rating is adopted if and only if it strongly increases subscriptions. For this it is necessary that participation (as opposed to usage) network effects are strong enough and if zero-rating offers raise expectations about other subscribers’ usage. Zero-rating then also maximizes total welfare.NOVA School of Business and Economics (NOVA SBE)RUNHoernig, SteffenMonteiro, Francisco2022-02-26T01:31:08Z2020-01-012020-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/92736eng0165-1765PURE: 15389204https://doi.org/10.1016/j.econlet.2019.108813info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:41:23Zoai:run.unl.pt:10362/92736Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:37:36.385261Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Zero-rating and network effects
title Zero-rating and network effects
spellingShingle Zero-rating and network effects
Hoernig, Steffen
Net neutrality
Network effects
Zero-rating
Finance
Economics and Econometrics
title_short Zero-rating and network effects
title_full Zero-rating and network effects
title_fullStr Zero-rating and network effects
title_full_unstemmed Zero-rating and network effects
title_sort Zero-rating and network effects
author Hoernig, Steffen
author_facet Hoernig, Steffen
Monteiro, Francisco
author_role author
author2 Monteiro, Francisco
author2_role author
dc.contributor.none.fl_str_mv NOVA School of Business and Economics (NOVA SBE)
RUN
dc.contributor.author.fl_str_mv Hoernig, Steffen
Monteiro, Francisco
dc.subject.por.fl_str_mv Net neutrality
Network effects
Zero-rating
Finance
Economics and Econometrics
topic Net neutrality
Network effects
Zero-rating
Finance
Economics and Econometrics
description We consider internet service providers’ incentives to zero-rate, i.e. to not count the usage of certain services towards data allowances, in the absence of payments from content providers. We show that zero-rating is adopted if and only if it strongly increases subscriptions. For this it is necessary that participation (as opposed to usage) network effects are strong enough and if zero-rating offers raise expectations about other subscribers’ usage. Zero-rating then also maximizes total welfare.
publishDate 2020
dc.date.none.fl_str_mv 2020-01-01
2020-01-01T00:00:00Z
2022-02-26T01:31:08Z
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url http://hdl.handle.net/10362/92736
dc.language.iso.fl_str_mv eng
language eng
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PURE: 15389204
https://doi.org/10.1016/j.econlet.2019.108813
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eu_rights_str_mv openAccess
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