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Free Internet Access and Regulation: A Note

Datta, B. and Dixon, H. (2003) Free Internet Access and Regulation: A Note. Journal of Institutional and Theoretical Economics, 159 (3). pp. 594-598. ISSN 0932-4569

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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 price-cap 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
Institution: The University of York
Academic Units: The University of York > Economics and Related Studies (York)
Depositing User: York RAE Import
Date Deposited: 20 Apr 2009 09:17
Last Modified: 20 Apr 2009 09:17
Published Version: http://dx.doi.org/10.1628/0932456032954800
Status: Published
Publisher: Verlag J C B Mohr
Refereed: Yes
Identification Number: 10.1628/0932456032954800
URI: http://eprints.whiterose.ac.uk/id/eprint/6738

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