Consider throttling, or limiting the amount of bandwidth a subscriber can consume, depending on his traffic type. Given the investments in infrastructure necessary to run an ISP, is the industry susceptible to an equilibrium of natural monopoly?
Understanding the microeconomic choice of the consumer and firm helps one assess whether an ISP is operating in a competitive or monopolistic market. Are different markets in different states of competition? How do we assess as much, and how ought natural monopolies be controlled when the marketplace fails?
Author: Patrick Woods