Harold Feld has an interesting discussion of a new paper by three economists, arguing that network neutrality rules would produce more investment in broadband capacity.
Harold Feld has an interesting discussion of a new paper by three economists, arguing that network neutrality rules would produce more investment in broadband capacity.
I just looked at the abstract to the paper. Harold neglects to mention that the model either has consumer surplus the same or higher without a network neutrality rule. Beware of incomplete asertions….
Thanks, Greg. So for the non-economists out there, what follows from that?
(This is actually a comment from Harold Feld, who is having trouble authenticating with the blog.)
To Greg Rosston: Beware the incomplete assertion.
I most certainly agree! For example, I addressed the very point you raised in my blog entry.
While Dr. Rosston is certainly entitled to disagree with my assessment, he can hardly claim that I failed to address it (or am I the only one who reads more than the abstract these days?). In any event, I must ask Dr. Rosston if he believes this is what policymakers think “consumer surplus” means? I also must ask if he himself believes that a consumer surplus of this nature justifies permitting discrimination, assuming the other assumptions of the paper hold?