摘要：This paper examines the impact of regulatory intervention to cut termination
rates of calls from fixed lines to mobile phones. Under quite general conditions
of competition, theory suggests that lower termination charges will result in
higher prices for mobile subscribers, a phenomenon known as the “waterbed”
effect. The waterbed effect has long been hypothesized as a feature of many
two-sided markets and especially the mobile network industry. Using a uniquely
constructed panel of mobile operators’ prices and profit margins across more
than twenty countries over six years, we document empirically the existence and
magnitude of this effect. Our results suggest that the waterbed effect is
strong, but not full. We also provide evidence that both competition and market
saturation, but most importantly their interaction, affect the overall impact of
the waterbed effect on prices.
