Content providers thrive paying network providers, outperforming neutrality regulations.
The article explores the impact of network neutrality on user welfare by analyzing how content providers and network providers interact in the market. Surprisingly, the study finds that more content providers enter the market when they pay network providers, compared to when they don't. In this scenario, network providers also tend to invest more in their services. The research suggests that the best approach for user welfare depends on specific factors, highlighting the need for careful consideration when designing neutrality regulations.