Question

"The ability of internet service providers to charge termination fees to content providers for delivering their content raises an important question for policy: does a positive termination fee lead to an equal reduction in prices to users?” Can economic analysis help answer this question? Explain

Answer 1

As per the economic intuition, it represents how the internet service providers can help to “pass-through” and can go be the effect of the “the waterbed effect.” Depending on the analysis, it can obligate on how there would be the situation that can note the importance of the two content providers to be identical, and how the users can be obligate as per the willingness to pay and then there can be the subscription fee, that can help to match with the elastic demand that can determine and access the internet service provider. Another aspect is to relate with the users that can aim to be willing to subscribe that could be noted as the fee is high. Another aspect is how there would be the ISP that can decide the relation of charge a content provider and how it would be able to obligate per the (prioritized high-speed) traffic that can generate and thee would be the obligation based on the conjecture that can be depending on the subscription fees paid by end-users that would substantial be the basis of the decrease. This result is obvious if the internet service provider is in a competitive setting because of its overall profits, which can note the source, that can obligate as per the normal level and aim per the competitive process. The net neutrality and how the holds for internet service providers that can aim depend on the market power. There can be depending on the content providers and it would be aimed as per the charged more and it would aim to note how there can be the subscription fees which would eventually decrease. Another aspect is how there can be two-sided nature depending on the market. It would mark the advantage of end-users, and how it would be substantially based on the policy debate.