Complementarity in household expenditures on fixed and mobile Internet in France

Mathilde Aubouin, Paolo Melindi-Ghidi and Jean-Philippe Nicolaï ()
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Jean-Philippe Nicolaï: GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes

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Abstract: This paper revisits the question of whether fixed and mobile Internet expenditures are substitutable or complementary. We estimate a demand system using French household expenditure data to compute price elasticities for different categories of goods. The results indicate that fixed and mobile Internet expenditures are complementary in France. This complementarity effect increases with income level. We then develop a simple theoretical model showing that depending on the characteristics of fixed and mobile data tariffs, fixed and mobile Internet expenditures can exhibit non-substitutability or even complementarity.

Keywords: QUAIDS demand system; Household behavior; Internet expenditure (search for similar items in EconPapers)
Date: 2025-09-30
New Economics Papers: this item is included in nep-com, nep-eur, nep-ict and nep-reg
Note: View the original document on HAL open archive server: https://hal.science/hal-05319883v1
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Published in Annals of Economics and Statistics, 2025, 159, pp.143-173. ⟨10.2307/48839157⟩

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Related works:
Journal Article: Complementarity in Household Expenditures on Fixed and Mobile Internet in France (2025)
Working Paper: Complementarity in household expenditures on fixed and mobile Internet in France (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05319883

DOI: 10.2307/48839157

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