Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059241 | Economics Letters | 2014 | 4 Pages |
Abstract
We show that the waterbed effect, i.e. the pass-through of a change in one price of a firm to its other prices, is much stronger if the latter include subscription rather than only usage fees. In particular, in mobile network competition with a fixed number of customers, the waterbed effect is full under two-part tariffs, while it is only partial under linear tariffs.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Steffen Hoernig,