there is more (interaction) surplus among loyal users than among highly profitable Web sites. But if
the situation is reversed, forcing ISPs to reduce prices and build more line to consumer homes may be a
higher priority.” The issue of net neutrality may obviously affect both vertical and hori-
zontal merger incentives. It is, however, beyond the scope of this chapter to go into ver-
tical mergers and sector-specific regulations.
ACKNOWLEDGMENTS
We thank Simon P. Anderson and Anna D’Annunzio for helpful discussions and comments.
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264 Handbook of Media Economics
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