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Congestion v Content Provision in Ne...

Tudon Maldonado, Jose Francisco.

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Congestion v Content Provision in Net Neutrality: The Case of Amazon's Twitch.tv.

Record Type:	Electronic resources : Monograph/item
Title/Author:	Congestion v Content Provision in Net Neutrality: The Case of Amazon's Twitch.tv./
Author:	Tudon Maldonado, Jose Francisco.
Published:	Ann Arbor : ProQuest Dissertations & Theses, : 2018,
Description:	83 p.
Notes:	Source: Dissertations Abstracts International, Volume: 80-01, Section: A.
Contained By:	Dissertations Abstracts International80-01A.
Subject:	Economics. -
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=10749851
ISBN:	9780438083288

Congestion v Content Provision in Net Neutrality: The Case of Amazon's Twitch.tv.
Tudon Maldonado, Jose Francisco.

Congestion v Content Provision in Net Neutrality: The Case of Amazon's Twitch.tv. - Ann Arbor : ProQuest Dissertations & Theses, 2018 - 83 p.

Source: Dissertations Abstracts International, Volume: 80-01, Section: A.

Thesis (Ph.D.)--The University of Chicago, 2018.

This item must not be sold to any third party vendors.

Net neutrality encourages content provision but also creates congestion externalities from the increase in data traffic. I study the consequences of net neutrality in Twitch.tv, a popular internet platform. Twitch is non-neutral because it gives priority to the most popular content providers by compressing their data, which makes them accessible to more consumers. I estimate a two-sided-market model that considers the interactions between content provision, its consumption, and congestion. Using an exogenous technological upgrade that increased data traffic, I identify the costs of congestion for content providers and for their consumers and, using exogenous time-series variations within panels, I identify the benefits of prioritization. I use the estimated preferences and technological parameters to study the counterfactual in which net neutrality is imposed in the platform, which requires priority to be allocated anonymously. Consumer welfare drops 5%, whereas content provision does not increase, but its average quality drops. I then consider a counterfactual rent-extractive platform that charges for prioritization under the non-neutral regime. In this case, net neutrality, which prohibits priority charges, increases content provision, but consumer welfare still drops due to lower content quality and congestion externalities.

ISBN: 9780438083288Subjects--Topical Terms:

517137
Economics.

Congestion v Content Provision in Net Neutrality: The Case of Amazon's Twitch.tv.
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520 $a Net neutrality encourages content provision but also creates congestion externalities from the increase in data traffic. I study the consequences of net neutrality in Twitch.tv, a popular internet platform. Twitch is non-neutral because it gives priority to the most popular content providers by compressing their data, which makes them accessible to more consumers. I estimate a two-sided-market model that considers the interactions between content provision, its consumption, and congestion. Using an exogenous technological upgrade that increased data traffic, I identify the costs of congestion for content providers and for their consumers and, using exogenous time-series variations within panels, I identify the benefits of prioritization. I use the estimated preferences and technological parameters to study the counterfactual in which net neutrality is imposed in the platform, which requires priority to be allocated anonymously. Consumer welfare drops 5%, whereas content provision does not increase, but its average quality drops. I then consider a counterfactual rent-extractive platform that charges for prioritization under the non-neutral regime. In this case, net neutrality, which prohibits priority charges, increases content provision, but consumer welfare still drops due to lower content quality and congestion externalities.
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