3 ms·
So here is what I understood. Price differentiation will impact the equilibrium as content providers (CPs) are now competing also on connection speed. Lower qua
by kfk 9y ago
So here is what I understood. Price differentiation will impact the equilibrium as content providers (CPs) are now competing also on connection speed. Lower quality CPs have incentive of paying ISPs to get better speed for their sites. If lower quality CPs pay ISPs more than the good ones everyone gets worst off. In this scenario CPs are also worst off as now they are diverting money to ISPs instead then profits or investment.