Scenario 1 estimates the effect of price discrimination of ISP when there is no network neutrality regulation of government. In scenario 1, it is assumed that two ASPs provide application services through ISP’s 100 Mbps Internet service, and compete with each other to diffuse their own service to end-users. That is, one ISP and two ASPs are assumed, because this simplifies the analysis and allows for the evaluation of the effect of network neutrality. Decisions with regard to the network neutrality principle and the final consumer utility progress through three sequential stages. We determine subgame perfect equilibrium through a three-stage extensive-form game. The ISP makes a decision at the first and two ASPs make decisions simultaneously at the second stages. At last, each consumer makes a decision at the third stage. Through computational experiments, we then deduce the Nash equilibrium by sequentially solving the games described in stages III, II, and I using backward induction.