Calling party pays or receiving party pays? The diffusion of mobile telephony with endogenous regulation

  title={Calling party pays or receiving party pays? The diffusion of mobile telephony with endogenous regulation},
  author={Ralf Dewenter and J{\"o}rn Kruse},
  journal={Information Economics and Policy},
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 interdependency of penetration rates and regulatory interventions. For this purpose we use data on political and institutional factors to instrument endogenous regulatory decisions. We conclude from our empirical… CONTINUE READING
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