This paper investigates how incentives of network operators to deviate from neutrality may create social costs or benefits in different market structures. The deviation from network neutrality is a general form of discrimination based on charging different prices for non-affiliated content and application providers. In this paper, deviation from network neutrality is formulated as a form of ver...

We demonstrate that auctioning market licenses may result in higher market prices than assigning them via more random allocation mechanisms. When future market pro…t is uncertain, winning an auction is like winning a lottery ticket. If …rms di¤er in risk attitudes, auctions select the least risk averse …rm, which, in turn, set a higher price (or a higher quantity, in case quantity is the decisi...

The standard monopoly pricing problem is re-considered when the buyer’s type (e.g. age, income, experience) can be credibly disclosed at some cost. In the optimal sales mechanism with costly disclosure, the seller posts a “sticker price” available to any buyer, as well as a schedule of discounts available to those who disclose certain types. Unambiguous welfare implications are available in the...

A. STYLIZED MODEL........................................................................................................................................... 3 B. NETWORK PROVIDER IS MONOPOLIST IN THE MARKET FOR INTERNET SERVICES .......................................... 5 1. No General Incentive to Discriminate ......................................................................................

We describe competition over space between a competitive shipping industry (truck-barge) and one with market power (the railroad). The latter prices so as to "beat the competition" in equilibrium, or else at the monopoly price, if that is lower. The monopoly price rises more slowly than do the costs of transportation (freight absorption) if the spatial demand at each point is log-concave. With ...

This paper explains how grants of monopolistic privileges to capitalists can lower labor and land factors’ prices compared to what would prevail in a free market environment. Monopoly gains of privileged business owners are not only “extracted” from their clients but also from factor owners. We revisit Rothbardian monopoly price theory and extend it to the realm of factor pricing. Monopolistic ...

Zhen Li1 and Qi Liao2 1Department of Economics and Management, Albion College, Albion, Michigan, USA 2Department of Computer Science, Central Michigan University, Mount Pleasant, Michigan, USA ABSTRACT Economics play an increasingly important role in fighting cyber crimes. While the arms race against botnet problems has achieved limited success, we propose an approach attacking botnets through ...

We analyze oligopolistic competition in a multi-period dynamic setting for goods with network effects. Two or more infinitely-lived firms produce incompatible products differentiated in their inherent quality. Consumers live for a single period and receive the network effect of the previous period’s sales. We show existence and characterize Markov perfect equilibria that are unique given market...