The recent growth of the Internet is creating markets for broadband telecommunications networks. In the past, virtually all such 'infrastructure' networks have been subject to government regulation. Two reasons advanced for this market intervention are (i) such networks constitute a natural...

The Federal Communications Commission recently implemented rules to promote “network neutrality.” This paper attempts to answer three questions concerning these rules: (1) What economic problem do the rules supposedly address? What does economic theory indicate about the risks of...