Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Analysis of Network Neutrality in Two-sided Markets Using Game Theory

게임이론에 의한 양면시장에서의 망중립성 분석

  • Oh, Hyung Sool (Depart. of Industrial & Management Engineering, Kangwon National University) ;
  • Lee, Jae Ha (Depart. of Business Management, Nam Seoul University)
  • 오형술 (강원대학교 공학대학 산업경영공학과) ;
  • 이재하 (남서울대학교 상경대학 경영학과)
  • Received : 2018.08.27
  • Accepted : 2018.09.17
  • Published : 2018.09.30
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Abstract

Net neutrality, which has not been a problem, has recently become a problem for ISPs (Internet Service Providers), and their complaints have been paid by domestic platform companies, but overseas global IT companies such as Google and YouTube, generate huge revenues from domestic markets. In this situation, domestic IT companies claim that it is natural to impose more expensive charges or restrict speed on users who generate huge traffic. On the other side, however, the telecommunication network has become an essential public good that is essential to our everyday life, and because it has been given a monopoly position by a private company to efficiently respond to the explosive demand for telecommunication services, It is necessary to provide equal and universal service and fulfill public duty. In this paper, we deal with the network neutrality problem, focusing on the price elasticity between the CP (Contents Provider) and the ISP, rather than the user who is one side of the two-sided market for the already saturated satellites communication market. We present a game model that determines the optimal price for each platform by Nash equilibrium and analyze how the net neutrality affects CP according to the change of exogenous variables through the proposed game model.

Keywords

References

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