Autori
Cambini, Carlo
Hoernig, Steffen
Bourreau, Marc

Titolo
Price distortion under fixed-mobile substitution
Periodico
Economia e politica industriale
Anno: 2015 - Volume: 42 - Fascicolo: 4 - Pagina iniziale: 441 - Pagina finale: 454

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.



SICI: 0391-2078(2015)42:4<441:PDUFS>2.0.ZU;2-Z

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