This paper analyzes the impact on mobile telephony diffusion patterns of the two predominant payment regimes, calling party pays (CPP) and receiving party pays (RPP), for mobile termination services. By applying instrumental variable techniques to panel data we account for a possible...

This paper analyzes the impact of different payment regimes for mobileto- mobile off-net calls on the diffusion of mobile telephony, using data on 84 countries from all over the world. Since the decision whether or not countries are likely to switch from RPP to CPP is not independent from...