Price distortion under fixed-mobile substitution

Marc Bourreau, Carlo Cambini, Steffen Hoernig

Research output: Contribution to journalArticlepeer-review


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.

Original languageEnglish
Pages (from-to)441-454
Number of pages14
JournalEconomia e Politica Industriale
Issue number4
Publication statusPublished - 1 Dec 2015


  • Fixed-mobile substitution
  • Network competition
  • Price discrimination


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