Working Papers

The WNE Working Papers series has been published by the Faculty of Economic Sciences at the University of Warsaw since 2008.

The WNE Working Papers series provides a fast, open channel for disseminating research conducted at the Faculty of Economic Sciences, University of Warsaw. The papers hosted here are working versions (pre-prints) and may evolve as authors refine their analyses, incorporate feedback, or progress through formal peer-review. What you read is the current version released by the authors, timestamped and assigned DOI/ISSN identifiers to ensure precise citation and version tracking. Copyright remains with the authors, who may, at any time, upload a revised file or add a note directing readers to a later, peer-reviewed publication.

The Working Papers series accepts articles by research employees of the Faculty and publications from conferences organised at the Faculty of Economic Sciences at the University of Warsaw. Articles should be original research papers which have not been previously published, on the subject of economics.

Please send your paper by e-mail: jzYQw'%FK6.4J+]AcX#\v^ypCN`]#[bjL9aqi3&%n%=GU+Ia{T!D^fL?M 

Please send 2 files:

(1) the main text without the title of the article and the authors (DOC/DOCX file) and

(2) the title page including: the title of the paper, the authors and their affiliation (DOC/DOCX file).

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Number of Results 3

WP(15/2026)509. Capturing zero-price effects in stated choice surveys: implications for willingness-to-pay and welfare

Authors: Tjiong Jeff, Dekker Thijs, Hess Stephane, Giergiczny Marek, Ojeda-Cabral Manuel, Czajkowski Mikołaj
Stated choice surveys commonly used in public policy appraisal – such as in transport or environmental economics – often contrast a ‘free’ status quo alternative against a range of (policy) interventions which can be implement…

WP509. Capturing zero-price effects in stated choice surveys: implications for willingness-to-pay and welfare

Stated choice surveys commonly used in public policy appraisal – such as in transport or environmental economics – often contrast a ‘free’ status quo alternative against a range of (policy) interventions which can be implemented at a cost. Limited attention has, however, been paid to the fact that the ‘free’ nature of the status quo (SQ) alternative may make the SQ alternative overly attractive due to the zero-price (ZP) effect. The ZP effect is a well-established notion in behavioural economics explaining the phenomenon that individuals tend to over-react to free alternatives. We present an experimental design setup allowing the separation of the ZP effect from the SQ effect together with the identification of non-linear sensitivities to costs. Choices made by students between different mobile broadband packages are used for illustrational purposes. Our analysis shows that the ZP effect is significant and the observed preference to remain in the SQ is largely due to the ZP effect. In practice, this may lead to biased welfare estimates for public policy packages if the ZP effect is not explicitly accounted for. Moreover, we also show that misspecification of the functional form for cost can lead to significant bias in WTP estimates and the ZP and SQ effects.


DOI: https://doi.org/10.33138/2957-0506.2026.15.509
Tjiong Jeff, Dekker Thijs, Hess Stephane, Giergiczny Marek, Ojeda-Cabral Manuel, Czajkowski Mikołaj
zero-price effect stated choice experiments status quo bias willingness-to-pay welfare analysis discrete choice modelling non-linear cost sensitivity Box-Cox transformation mobile broadband

WP(23/2024)459. Narrowing the ‘digital divide’: the role of fixed and mobile infrastructure

Authors: Ryan Hawthorne, Grzybowski Łukasz
We study substitution between fixed and mobile broadband services in South Africa using survey data on 134,000 individuals collected between 2009 and 2014. In our discrete-choice model, individuals choose fixed or mobile voice and data services in a …

WP459. Narrowing the ‘digital divide’: the role of fixed and mobile infrastructure

We study substitution between fixed and mobile broadband services in South Africa using survey data on 134,000 individuals collected between 2009 and 2014. In our discrete-choice model, individuals choose fixed or mobile voice and data services in a framework that allows these services to be considered substitutes or complements. We find that there is substantial heterogeneity in the perception of these services as substitutes/complements. We use our model to simulate the uptake of fixed and mobile broadband across various demographic groups under different policy interventions, including: (i) a reduction in mobile data prices; (ii) an expansion in fixed-line coverage; (iii) a widespread distribution of computers; and (iv) broader internet access in schools and workplaces. Our results suggest that, when applied in isolation, these interventions do not significantly increase internet access among poorer households. In particular, the uptake of fixed broadband would remain limited, even if accessible to all households. This is because many households prefer mobile internet access, perceiving it as a substitute for fixed broadband.
 


DOI: https://doi.org/10.33138/2957-0506.2024.23.459
Ryan Hawthorne, Grzybowski Łukasz
fixed-to-mobile substitution mobile broadband fixed broadband digital divide

WP(15/2024)451. Assessing the Substitutability of Mobile and Fixed Internet: The Impact of 5G Services on Consumer Valuation and Price Elasticity

Authors: Czajkowski Mikołaj, Zawadzki Wojciech, Grzegorz Bernatek, Maciej Sobolewski
In this study, we explore the dynamics of consumer choices in the Polish telecommunications market, focusing on preferences and valuations for home fixed, home mobile, and purely mobile internet connections. Key attributes such as speed, latency, dat…

WP451. Assessing the Substitutability of Mobile and Fixed Internet: The Impact of 5G Services on Consumer Valuation and Price Elasticity

In this study, we explore the dynamics of consumer choices in the Polish telecommunications market, focusing on preferences and valuations for home fixed, home mobile, and purely mobile internet connections. Key attributes such as speed, latency, data limits, and cost are examined. Central to our research is the investigation of how the integration of 5G technology might influence demand elasticity. Using a detailed discrete choice experiment, we apply a mixed logit model with random parameters to analyze stated choice data, enabling us to unravel the complexities of demand elasticity, especially in terms of own- and cross-price elasticities. This approach facilitates an assessment of the degree of substitutability between fixed and mobile internet services.
Our findings indicate a moderate substitution effect between fixed and mobile internet services. Results from a Small but Significant and Non-transitory Increase in Price (SSNIP) test suggest that these markets should continue to be regulated separately, mirroring the distinct regulation observed in fixed and mobile telephony. Furthermore, simulations provide insights into potential future market shifts with the advent of 5G services. This paper contributes significantly to the discourse on fixed-mobile internet substitution and offers vital insights for defining markets in antitrust discussions, competitive agreements, and potential mergers within the telecom sector.


DOI: https://doi.org/10.33138/2957-0506.2024.15.451
Czajkowski Mikołaj, Zawadzki Wojciech, Grzegorz Bernatek, Maciej Sobolewski
Fixed-Mobile Internet Substitution Consumer Preferences in Telecommunications Mobile Broadband Access Home Internet Connectivity Discrete Choice Analysis 5G Network Impact Demand Elasticity in Internet Services Stated Preference Methodology Telecommunications Market Analysis Price Elasticity in Internet Access
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