Non-neutral internet boosts innovation and lowers congestion, but at what cost?
The article analyzes how changing from a neutral to a non-neutral internet network affects different players like internet service providers, content providers, and users. They created a model to see how this shift impacts social welfare, investment, innovation, and congestion levels. The study found that in a non-neutral system, social welfare, investment, and innovation generally improve, and congestion decreases. However, the backbone internet service provider benefits the most, while the impact on other players like access internet service providers is more mixed. Some regulation can help, but too much can harm social welfare.