The Economics of Net Neutrality


This paper discusses the issues around "net neutrality" and goes on to make the economic case against it.


"In other words, "net neutrality" is actually a friendly-sounding name for price regulation. We fear that such regulation could substantially reduce investment incentives, distort innovation, and ultimately harm consumers. The government must weigh policy choices carefully: are the benefits of price regulation likely to exceed its costs? We believe that the history of price regulation clearly teaches us that the answer is likely to be no (see, for example, Paul Joskow and Roger Noll's overview of regulation)."




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