4.2. Scenario 2: regulation timing
Scenario 2 describes the diffusion of a new Internet application service, while changing the time when government starts network neutrality regulation. Scenario 2 uses the same three-stage extensive-form game used in scenario 1, whereas it assumes that ISP provides high priority service for ASP 1 that is integrated vertically with ISP and low priority service for ASP 2. Network neutrality regulation is absent at the initial stage of diffusion of the service, and the government introduces network neutrality regulation, preventing ISP from discriminating between the two ASPs in the middle of the diffusion process. ISP, therefore, should provide the same quality of Internet service to both of ASP 1 and 2 since the introduction of the regulation. Scenario 2 calculates the profits of both ASPs, and evaluates the effect of network neutrality regulation while changing the time of the introduction of the regulation. Table 3 presents parameter values commonly used in each scenario.
4.2. Scenario 2: regulation timingScenario 2 describes the diffusion of a new Internet application service, while changing the time when government starts network neutrality regulation. Scenario 2 uses the same three-stage extensive-form game used in scenario 1, whereas it assumes that ISP provides high priority service for ASP 1 that is integrated vertically with ISP and low priority service for ASP 2. Network neutrality regulation is absent at the initial stage of diffusion of the service, and the government introduces network neutrality regulation, preventing ISP from discriminating between the two ASPs in the middle of the diffusion process. ISP, therefore, should provide the same quality of Internet service to both of ASP 1 and 2 since the introduction of the regulation. Scenario 2 calculates the profits of both ASPs, and evaluates the effect of network neutrality regulation while changing the time of the introduction of the regulation. Table 3 presents parameter values commonly used in each scenario.
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