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Calling Party Pays or Receiving Party Pays?

Author

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  • Dewenter, Ralf

    (Helmut Schmidt University, Hamburg)

  • kruse, Joern

    (Helmut Schmidt University, Hamburg)

Abstract

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 penetration rates, a problem of endogenous regulation arises. In order to account for this problem we refer to data on political and democratic stability to instrument endogenous policy decisions. However, positive effects from regime switching seem to vanish when accounting for endogenous regulation. The effects of introducing competition instead seems to be underestimated ignoring endogeneity.

Suggested Citation

  • Dewenter, Ralf & kruse, Joern, 2005. "Calling Party Pays or Receiving Party Pays?," Working Paper 43/2005, Helmut Schmidt University, Hamburg.
    • Handle: RePEc:ris:vhsuwp:2005_043
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    Cited by:

    1. Francesc Trillas & Miguel Angel Montoya, 2008. "The degree of commitment to regulator independence: measurement and impact," Hacienda Pública Española / Review of Public Economics, IEF, vol. 185(2), pages 89-114, July.

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