Cost cap tariffs are pay-per-use tariffs for which costs cannot exceed a predefined cost limit. They were recently introduced to telecommunications markets, but were previously also applied in the insurance industry as deductibles or in the rental industry as day rates. This paper develops and...

According to static models of industrial organization, a rise in competition decreases prices. In this paper, I test whether this conclusion can be reversed in the mobile telecommunications markets where dynamic efficiency effects might be significant. The empirical test relies on the change in...

Mobile telecommunication operators routinely charge subscribers lower prices for calls on their own network than for calls to other networks (on-net discounts). Studies on tariff-mediated network effects suggest this is due to large operators using on-net discounts to damage smaller rivals....

This paper investigates the impacts of the current roaming rules on domestic competition and welfare. We consider a model for two countries in which each country has two operators that compete in the retail market for access services and also in the wholesale market for roaming. We first derive...

We empirically assess the impact of the EU roaming regulation on mobile operators' average revenues per user (ARPU) and retail prices. Using a differences-in-difference approach, hedonic price regressions and detailed operator and plan-level data we find that the regulation decreased mobile...

In theory, network profits are independent of the reciprocal termination rates when operators charge nondiscriminatory call prices (Laffont, Rey and Tirole, 1998). Additionally, termination rates can be used to subsidize subscriber acquisition cost. This issue is typically known as a "waterbed...

In this paper, we assess the impact of competition and regulation on prices of mobile services in France. We estimate hedonic price regressions using data on tariff plans offered by the main mobile telecommunications operator in France between May 2011 and December 2014. In this time period, the...