Social and Behavioral Sciences Commons^™

The Growth Of The Broadband Internet Access Market In California: Deployment, Competition, Adoption, And Challenges For Policy, James E. Prieger

School of Public Policy Working Papers

This report examines the great progress made in availability and adoption in the broadband market over the past few decades and shows how Californian residents and businesses have come to use broadband widely. The policy issues involved with continuing the tremendous strides already made are discussed, along with recommendations for policy-makers.

The report begins by documenting the rapid growth of Internet usage in the U.S. and California. There is a review of the current state of competition in voice and broadband markets, discussing the decline of traditional telephone service, which is rapidly approaching irrelevance, and the rise of wireless and …

The Growth Of The Broadband Internet Access Market In California: Deployment, Competition, Adoption, And Challenges For Policy (Research Brief), James E. Prieger

School of Public Policy Working Papers

This report is a brief version of a longer study of the California broadband market (Paper 63). Readers interested in more background information, more empirical analysis, and more complete documentation of sources and methodology can refer to the longer report, which is available at: http://digitalcommons.pepperdine.edu/sppworkingpapers/63/.

Applications Barriers To Entry And Exclusive Vertical Contracts In Platform Markets, James Prieger, Wei-Min Hu

School of Public Policy Working Papers

Our study extends the empirical literature on whether vertical restraints are anticompetitive. We focus on exclusive contracting in platform markets, which feature indirect network effects and thus are susceptible to applications barriers to entry. Exclusive contracts in vertical relationships between the platform provider and software supplier can heighten entry barriers. We test these theories in the home video game market. We find that indirect network effects from software on hardware demand are present, and that exclusivity takes market share from rivals, but only when most games are non-exclusive. The marginal exclusive game contributes virtually nothing to console demand. Thus, allowing …

The Broadband Digital Divide And The Nexus Of Race, Competition, And Quality, James Prieger, Wei-Min Hu

School of Public Policy Working Papers

We examine the gap in broadband access to the Internet between minority groups and white households with geographically fine data on DSL subscription. In addition to income and demographics, we also examine quality of service and competition as components of the Digital Divide. The gaps in DSL demand for blacks and Hispanics do not disappear when income, education, and other demographic variables are accounted for. However, lack of competition is an important driver of the Digital Divide for blacks. Service quality is an important determinant of demand, and ignoring it masks the true size of the DSL gap for Hispanics.