Nicholas Economides

In a Sept. 12 lunch-time research seminar, Nicholas Economides, professor of economics at the New York University Stern School of Business, assessed the pricing of Internet access. "Network Neutrality can maximize welfare," Economides said, where welfare is defined as consumer surplus plus the profit of content providers. His current research paper, "The Economics of Network Neutrality," analyzes the private and social incentives behind introducing additional fees to select Internet applications. Economides said President Barack Obama's position on Network Neutrality is that network providers should not be allowed to charge fees to privilege the content of applications of some websites and Internet applications over other. "Even in the presence of congestion, Net Neutrality can maximize welfare, " Economides said. Economides assessed ways to alleviate congestion through the division of bandwith and the application of an "optimal delay" of information and services. "The Economics of Network Neutrality" has not yet been released but Economides' website, "The Economics of Networks," has been ranked as the fourth-leading economics website in the world by The Economist. The next Annenberg Research Seminar will be Sept. 19, when John Durham Peters of the University of Iowa will present about “Two Cheers for Technological Determinism.”