Economists' Statement on Network Neutrality Policy

Internet Policy, Regulation, Business, Technology, U.S. Economy

Robert Hahn
Robert E. Litan, Senior Fellow, Economic Studies

AEI-Brookings Joint Center for Regulatory Studies

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March 2007 —

William J. Baumol, Martin Cave, Peter Cramton, Robert Hahn, Thomas W. Hazlett, Paul L. Joskow, Alfred E. Kahn, Robert Litan, John Mayo, Patrick A. Messerlin, Bruce M. Owen, Robert S. Pindyck, Vernon L. Smith, Scott Wallsten, Leonard Waverman and Lawrence J. White

Executive Summary

Network neutrality is a policy proposal that would regulate how network providers manage and price the use of their networks. Congress has introduced several bills on network neutrality. Proposed legislation generally would mandate that Internet service providers exercise no control over the content that flows over their lines and would bar providers from charging particular services more than others for preferentially faster access to the Internet. These proposals must be considered carefully in light of the underlying economics. Our basic concern is that most proposals aimed at implementing net neutrality are likely to do more harm than good.