Price distortion under fixed-mobile substitution

Marc Bourreau, Carlo Cambini and Steffen Hoernig

Nova SBE Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics

Abstract: This paper analyses the impact of substitution between fixed and mobile tele- phony on call prices. We develop a model where consumers difer in the benefits of mobility and firms price discriminate between on-net and off-net calls. We find that call prices are distorted downwards due to substitution possibilities and customer heterogeneity, and that this distortion increases with the fixed-mobile termination mark-up.

Keywords: Network competition; fixed-mobile substitution; price discrimination (search for similar items in EconPapers)
JEL-codes: L51 L92 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2015
New Economics Papers: this item is included in nep-com, nep-mkt and nep-reg
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https://run.unl.pt/bitstream/10362/82835/1/WP594.pdf

Related works:
Journal Article: Price distortion under fixed-mobile substitution (2015)
Working Paper: Price distortion under fixed-mobile substitution (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:unl:unlfep:wp594

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