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The design of communication systems.

The debate on network neutrality is gaining the center stage in the economics of information and communication technologies. In order to frame the analysis on the matter it seems appropriate to make a step backward. This debate in fact applies the basic tools of the economics of vertical integration.

The issue of vertical integration and vertical separation harkens back to debates over the firm's boundaries. Better understanding the firm's boundaries, and thus the choices between firm and market, is one of the central themes in the economic analysis of the firm.

Ever since Coase's seminal paper in 1937, there has been a growing body of theoretical literature that ...

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