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Price Distortion under Fixed-Mobile Substitution

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Resumo(s)

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.

Descrição

Palavras-chave

Network competition Fixed-mobile substitution Price discrimination

Contexto Educativo

Citação

Bourreau, Marc, Cambini, Carlo and Hoernig, Steffen, Price Distortion under Fixed-Mobile Substitution (June, 2015). FEUNL Working Paper Series No. 594

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Nova SBE

Licença CC