The Strategic Use of Download Limits by a Monopoly Platform

@inproceedings{Economides2015TheSU,
  title={The Strategic Use of Download Limits by a Monopoly Platform},
  author={Nicholas Economides and Benjamin E. Hermalin},
  year={2015}
}
We consider a heretofore unexplored explanation for why platforms, such as Internet service providers and mobile-phone networks, offer plans with download limits: through one of two mechanisms, doing so causes the providers of the content consumer purchase to either reduce their prices or increase their quality. This, in turn, generates greater surplus for consumers. A platform captures this increased surplus by charging consumers higher access fees. Even accounting for congestion externalities… CONTINUE READING

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