Net Neutrality

The Economics of Deregulation

Net Neutrality

Written by

Dale Rush

FINA 500

As I sit here in attempt to jot down my thoughts about how I would tie something as political as net neutrality to an Economic discussion it dawned on me that net neutrality can be explained using almost every chapter of my one dollar economics book. Net neutrality can be explained very simply as with any utility industry as deregulated or regulated. There are of course pros and cons for how both deregulated/regulated markets are handled. As described in the Wall Street Journal article “A central element would be a ban on broadband providers blocking, slowing down or speeding up specific websites in exchange for payment1.” It would be difficult to write this paper without expressing an opinion as to which side of the band wagon you fall on and often this is similar to which political organization you support. In this case however for myself I found that I aligned with what I would say is the political opposite side of where I would characterize my allegiance to a political party or group. With that being said let’s talk about economics of broadband speed internet. The internet serves as a hub for current business and in the ever changing times of “I want it now or even I wanted this yesterday” attitudes of consumers a hub of broadband speed internet is required to satisfy the insatiable thirst for the “faster and more everything” society of consumers.

As aforementioned, companies sell their products in two markets: markets are either deregulated (free markets) or regulated. Deregulated markets are those markets which would benefit with fewer government regulations therefore allowing capitalism control the market norms essentially. Deregulation is based upon having simpler laws which lead to more competition which will in turn lead to more productivity, efficiency, and innovation therefore driving the market to an equilibrium of being able to supply goods at lower prices....