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Net Neutrality and Competition Scott Wallsten Senior Fellow

Net Neutrality and Competition Scott Wallsten Senior Fellow Director, Communications Policy Studies Progress & Freedom Foundation swallsten@pff.org scott@wallsten.net. The Internet. Multi-sided market. merchants. consumers. The Internet. Multi-sided market + network effects. Consumers.

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Net Neutrality and Competition Scott Wallsten Senior Fellow

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  1. Net Neutrality and Competition Scott Wallsten Senior Fellow Director, Communications Policy Studies Progress & Freedom Foundation swallsten@pff.org scott@wallsten.net

  2. The Internet Multi-sided market merchants consumers

  3. The Internet Multi-sided market + network effects Consumers Content

  4. Mandatory net neutrality = price regulation

  5. Market failure? Innovation in content and infrastructure. Optimal pricing unknown.

  6. Anticompetitive discrimination? • Not in providers’ interests. • Not with adequate competition. • Antitrust, not regulatory, issue.

  7. Effects on consumers? • In a two-sided market, if prices increase for one side they decrease for the other. • If infrastructure charges content providers… consumer prices DECREASE!

  8. COMPETITION

  9. Conclusions Content AND infrastructure important Optimal pricing unknown Net neutrality = price regulation Focus on competition

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