Price distortion under fixed-mobile substitution

Marc Bourreau, Carlo Cambini () and Steffen Hoernig

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2015, vol. 42, issue 4, 454 pages

Abstract: This paper analyses the impact of substitution between fixed and mobile telephony on call prices. We develop a model where consumers differ 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. Copyright Associazione Amici di Economia e Politica Industriale 2015

Keywords: Network competition; Fixed-mobile substitution; Price discrimination; L51; L92 (search for similar items in EconPapers)
Date: 2015
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Working Paper: 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:spr:epolin:v:42:y:2015:i:4:p:441-454

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DOI: 10.1007/s40812-015-0017-2

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