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.

Price Distortion under Fixed-Mobile Substitution / Bourreau, M.; Cambini, Carlo; Hoernig, S.. - In: ECONOMIA E POLITICA INDUSTRIALE. - ISSN 0391-2078. - STAMPA. - 42:(2015), pp. 441-454.

Price Distortion under Fixed-Mobile Substitution

CAMBINI, CARLO;
2015

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.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11583/2615455
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