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Abstract: Content Delivery and Vertical Integration in On-line Content Markets
Abstract
Content Delivery and Vertical Integration in On-line Content Markets
The Review of Network Economics
Vol. 4, Issue 1 - March 2005, pp 63 - 74
Author
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Diego Lanzi
Department of Economics, University of Bologna
E-mail: [email protected]
Massimiliano Marzo
Department of Economics, University of Bologna and Johns Hopkins University, SAIS - BC
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Abstract
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On-line content delivery and vertical alliances between conduit and content providers are nowadays
crucial issues in on-line content markets. In this paper, we discuss and compare two types of model
for on-line content delivery: push and pull. We assume non-zero marginal cost for network transits,
justified by the presence of network services for content delivery (like data caching). Under both
models, we show that the rationale behind vertical strategic integration between conduit and content
providers in the case of successive monopolies.
Keywords: vertical integration, Internet, foreclosure, successive monopolies
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