The Impact of Multisided Markets on the Debate over Optional Transactions for Enhanced Delivery over the Internet

This article examines one of the more controversial policy regulations of the “network neutrality” debate, the ban on optional business-to-business transactions between broadband Internet service providers and content providers for enhanced quality of service (QoS) in the delivery of packets over the Internet. Because the market for broadband access is multisided, business-to-business transactions for enhanced QoS would foster positive network effects and diminish negative externalities. Additionally, multisided markets prevent network operators from having the incentive to harm or discriminate against content.

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