Abstract:
Presently, the network neutrality paradigm governs the manner in which most data is transported over the Internet. However, experts often question whether keeping such a policy remains reasonable. In the context of new technologies, such as all-IP Next Generation Networks (NGN), traffic discrimination promises to benefit both network providers and users, but also imposes risks. We develop an agent-based NGN market model, in order to investigate the effects of neutral and non-neutral traffic management policies on the performance of Internet market participants. A simulation-based analysis of different policy and competition scenarios suggests that content providers perform best when network neutrality is imposed, while network providers and consumers may benefit from traffic discrimination, under certain circumstances.
