Full Citation

Title: Dynamic Bargaining and Size Effects in the Broadband Industry

Citation Type: Miscellaneous

Publication Year: 2019

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Abstract: estimate a model of dynamic bargaining between internet service providers (ISPs) and Netflix over interconnection fees and use it to evaluate counterfactual ISP mergers. I show that the size of the downstream consumer market an ISP serves is much more important than its disagreement point for determining bargaining outcomes with Netflix. I evaluate several mergers between ISPs serving non-overlapping markets and find that smaller ISP mergers would lengthen negotiations and reduce Netflix's share of the bargaining surplus, while larger mergers would have no significant effect.

Url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3332461

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Authors: Goetz, Daniel

Publisher: Rotman School of Management

Data Collections: IPUMS CPS

Topics: Other

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