IEEE Xplore Abstract - Paid prioritization and its impact on net neutrality: "we find that ISP's optimal pricing leads to an efficient differentiation among the CPs such that the social welfare is highly optimized" - but the paper says nothing about the effects on policy. So here are the real issues the paper admits it won't touch:
1. " "CPs’ total utility is reduced due to monetary transfer from CPs to ISP" - i.e. this is protectionist of the telcos and the social welfare gain is just rents to the monopoly that the engineers assume will then be reinvested. As Keynes states (via Krugman), in the long run we're all dead....
2. "optimal social welfare is achieved by sacrificing CPs with lower valuations and biased towards the ISP for profit distribution." ie. cable TV as a model excluding bloggers etc. Do they have a solution?
3. "from a fairness perspective, policy makers might want to regulate the price not to be too high so as to balance the social welfare and fairness among different parties" - yes, that's FRAND + universal service, with regulated monitoring.
So they achieve precisely nothing in policy terms, sadly. Their 4 lines on law demonstrate their almost complete lack of familiarity with the policy literature. 'via Blog this'