Product quality and competition: evidence from the broadband industry
Access to high-quality broadband internet is important in many different respects such as in communication, education, commerce and information acquisition. We investigate the relationship between the number of broadband providers in an area and the quality of broadband service provided where downlo...
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| Veröffentlicht in: | Applied economics 2018-05, Vol.50 (24), p.2719-2732 |
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| container_end_page | 2732 |
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| container_issue | 24 |
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| container_title | Applied economics |
| container_volume | 50 |
| creator | Reed, Markum Watts, Alison |
| description | Access to high-quality broadband internet is important in many different respects such as in communication, education, commerce and information acquisition. We investigate the relationship between the number of broadband providers in an area and the quality of broadband service provided where download speed is used as a proxy for quality. We find that increased competition in an area positively affects the access to fast download speeds. This finding is robust to three different top download speeds tested. Additionally, a theoretical model is provided which shows that competition can decrease the profits associated with offering slow speeds; this gives an incentive for providers to offer higher speeds as a way to increase profits. |
| doi_str_mv | 10.1080/00036846.2017.1406657 |
| format | Article |
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| fulltext | fulltext |
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| ispartof | Applied economics, 2018-05, Vol.50 (24), p.2719-2732 |
| issn | 0003-6846 1466-4283 |
| language | eng |
| recordid | cdi_proquest_journals_2012883771 |
| source | Business Source Complete |
| subjects | Access Broadband broadband industry Cable modems Competition download speed Economic analysis Economic theory Internet Product quality Profits |
| title | Product quality and competition: evidence from the broadband industry |
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