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Evaluating the impact of price caps - Evidence from the European roam-like-at-home regulation

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  • Canzian, Giulia
  • Mazzarella, Gianluca
  • Ronchail, Louis
  • Verboven, Frank
  • Verzillo, Stefano

Abstract

The roam-like-at-home regulation (RLAH) eliminated all mobile roaming surcharges to European consumers traveling within Europe. We measure the causal impact of the regulation on European roaming traffic, using the Rest of the World as a control group. We find large and heterogeneous effects on retail and wholesale traffic volumes and revenues. To evaluate the welfare effects of the regulation, we develop a framework that includes consumer surplus, retail and wholesale profits. The gains in consumer surplus are large, and mainly stem from data services. The consumer gains are proportionately larger in small, open economies and in countries with previously high roaming prices. Finally, total welfare increases considerably, because the consumer surplus gains outweigh profit losses. As such, the removal of market power more than compensates for a distortion from a possible overconsumption at zero surcharges.

Suggested Citation

  • Canzian, Giulia & Mazzarella, Gianluca & Ronchail, Louis & Verboven, Frank & Verzillo, Stefano, 2025. "Evaluating the impact of price caps - Evidence from the European roam-like-at-home regulation," International Journal of Industrial Organization, Elsevier, vol. 103(PA).
    • Handle: RePEc:eee:indorg:v:103:y:2025:i:pa:s0167718724000705
    DOI: 10.1016/j.ijindorg.2024.103115
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    2. Muñoz-Acevedo, Ángela & Grzybowski, Lukasz, 2023. "Impact of roaming regulation on revenues and prices of mobile operators in the EU," International Journal of Industrial Organization, Elsevier, vol. 89(C).
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    4. Martin Quinn & Miguel Godinho de Matos & Christian Peukert, 2024. "The Welfare Effects of Mobile Internet Access: Evidence from Roam-Like-at-Home," The Economic Journal, Royal Economic Society, vol. 134(659), pages 1228-1246.

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    More about this item

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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