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Discussion of Papers by Bruce Owen and Christopher Yoo

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Abstract

The ambiguity in allocating economic stages to regulatory stages that arises in some contexts does not prevent either antitrust or regulatory intervention with respect to content and distribution. However, the feasibility of intervening with respect to vertical integration does not by itself make such intervention wise. In general, cases when a dominant distributor over substantial areas tries to integrate with an established content provider that dominates its programming segment, antitrust intervention on potential competition grounds may be warranted. This rationale does not justify an outright ban on ISP investment in content, but such a ban would not stop rapid development of web content and might be worth it if it prevents limitations on ISP pricing flexibility.

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Correspondence to Michael Salinger.

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Salinger, M. Discussion of Papers by Bruce Owen and Christopher Yoo. Rev Ind Organ 38, 435–440 (2011). https://doi.org/10.1007/s11151-011-9292-x

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