The purpose of this study, conducted for Telefónica S.A., is to analyze telecommunications “net neutrality” from a new perspective. We will examine the hypothetical imposition of neutrality rule in other industries. To this end, after examining current “net neutrality” economic literature and the regulation in place, we will first identify and set the bounds for a general definition of “neutrality rule”. We will, then, determine the restrictions that such imposition would entail for the optimal performance of firms and customers satisfaction and welfare.
To illustrate these distortions we will examine the impact of “neutrality rule” a number of specific industries that typically use a wide range of strategies towards both suppliers and customers. All of this will help us go through the different commercial strategies. We will show the effects of an eventual regulation addressed to limit such strategies, not only in terms of firm’s efficiency loss, but also and particularly referring to damages on end-customers welfare.
During 2015, we will examine every month a different sector/industry in order to show the impact that imposing a neutrality rule would have on them.