Net neutrality: A simple goal with some difficult implementation ahead
Joshua Gans 11 June 2014
Netflix recently agreed to pay Comcast for faster access to Comcast’s customers, intensifying the debate over ‘net neutrality’ – the principle that internet service providers should treat all data equally. This column argues that without net neutrality regulation, ISPs can capture the benefits of higher-quality content, thereby discouraging innovation from content providers. To be effective, net-neutrality regulation must prevent content-based price discrimination on both sides of the market.
Net neutrality has a simple goal – to ensure that consumers face an undistorted choice in choosing where to devote their attention on the Internet. The rationale for that goal is to ensure a ‘level playing field’ for those who provide content, applications, or anything else via the Internet.
Competition policy Industrial organisation Microeconomic regulation
US, technology, market power, regulation, internet, price discrimination, net neutrality, Federal Communications Commission
Pop artists can earn more by pricing tickets smartly
Pascal Courty, Mario Pagliero 04 February 2009
Is the music business doing business well? This column shows that offering multiple seating categories at concerts raises revenues by about 5%. But a quarter of concerts do not price discriminate, and most only offer two ticket types. The music industry seems to be leaving money on the concert floor.
When performing artists hit the road on tour, they have a very good reason for putting up with life away from home and gruelling schedules – performing for local audiences is profitable. In 1997-1998, the not-so-young Rolling Stones travelled 25 countries with their Bridges to Babylon Tour, performing 108 shows in front of 4 million people and earning over $100 million in revenue. Connolly and Krueger (2006) point out that the majority of pop artists earn most of their income from concert tours, and concert prices increased throughout the 90’s, along with artist revenues.
Frontiers of economic research
price discrimination, music industry, concerts