IDEAS home Printed from https://ideas.repec.org/a/bpj/rneart/v10y2011i3n4.html
   My bibliography  Save this article

Welfare and Pricing of Mail in a Communications Market

Author

Listed:
  • De Donder Philippe

    (Toulouse School of Economics)

  • Cremer Helmuth

    (Toulouse School of Economics)

  • Dudley Paul

    (Royal Mail Group)

  • Rodriguez Frank

    (Oxera)

Abstract

We build a model where a postal incumbent offering single piece, transactional and advertising mail competes with postal entrants and with a firm offering an alternative medium. We solve for the optimal prices under various competition assumptions. We calibrate the model and provide numerical simulations in order to shed light on the impact of these assumptions on volumes and welfare levels.

Suggested Citation

  • De Donder Philippe & Cremer Helmuth & Dudley Paul & Rodriguez Frank, 2011. "Welfare and Pricing of Mail in a Communications Market," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-24, September.
    • Handle: RePEc:bpj:rneart:v:10:y:2011:i:3:n:4
    DOI: 10.2202/1446-9022.1223
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1446-9022.1223
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1446-9022.1223?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Philippe Donder & Helmuth Cremer & Paul Dudley & Frank Rodriguez, 2006. "Pricing and Welfare Implications of Alternative Approaches to Setting Price Controls in the Postal Sector," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Progress toward Liberalization of the Postal and Delivery Sector, chapter 0, pages 227-247, Springer.
    2. Philippe Donder, 2006. "Access Pricing in the Postal Sector: Theory and Simulations," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(3), pages 307-326, May.
    3. De Donder, Philippe, 2006. "Access Pricing in the Postal Sector," IDEI Working Papers 319, Institut d'Économie Industrielle (IDEI), Toulouse.
    4. Armstrong Mark, 2008. "Access Pricing, Bypass and Universal Service in Post," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-16, June.
    5. Veruete-McKay Leticia & Soteri Soterios & Nankervis John C. & Rodriguez Frank, 2011. "Letter Traffic Demand in the UK: An Analysis by Product and Envelope Content Type," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-28, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Philippe De Donder & Helmuth Cremer & Paul Dudley & Frank Rodiguez, 2011. "Optimal Pricing for Mail and Welfare Implications in a Communications Market," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Reinventing the Postal Sector in an Electronic Age, chapter 6, Edward Elgar Publishing.
    2. Christian Bach & Robert Edwards & Christian Jaag, 2023. "Postal Platform Pricing with Limited Consumer Attention," Working Papers 202318, University of Liverpool, Department of Economics.
    3. Bakhtieva, Dilyara & Kiljański, Kamil, 2012. "Universal Service Obligation and Loyalty Effects: An Agent-Based Modelling Approach," MPRA Paper 48549, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bloch Francis & Gautier Axel, 2008. "Access Pricing and Entry in the Postal Sector," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-24, June.
    2. Valentiny, Pál & Kiss, Károly Miklós, 2009. "A nélkülözhetetlen eszközök értelmezése és a postai szolgáltatások [The interpretation of essential facilities and the postal services]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1001-1024.
    3. Jaag Christian, 2011. "What is an Unfair Burden? Compensating the Net Cost of Universal Service Provision," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-32, September.
    4. Gautier Axel & Paolini Dimitri, 2011. "Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-30, September.
    5. De Donder Phillippe & Cremer Helmuth & Dudley Paul & Rodriguez Frank, 2008. "Price Controls in the Postal Sector: A Welfare Analysis of Alternative Control Structures," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-25, June.
    6. Gautier Axel & Poudou Jean-Christophe, 2014. "Reforming the Postal Universal Service," Review of Network Economics, De Gruyter, vol. 13(4), pages 453-477, December.
    7. Sandra Jódar-Rosell & Jordi Gual, 2010. "The Strange Couple: Regulation and Competition Policy in Network Industries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(3), pages 19-23, October.
    8. Christian Jaag & Urs Trinkner, 2008. "Market Opening, Downstream Access, and Competition in the Market for Mail," Working Papers 0011, Swiss Economics.
    9. Claire Borsenberger & Helmuth Cremer & Philippe De Donder & Denis Joram & Bernard Roy, 2010. "Funding the cost of universal service in a liberalized postal sector," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Heightening Competition in the Postal and Delivery Sector, chapter 14, Edward Elgar Publishing.
    10. repec:ces:ifodic:v:8:y:2010:i:3:p:14566923 is not listed on IDEAS
    11. Martin Maegli & Christian Jaag & Matthias Finger, 2009. "Co?ts de la r?gulation des industries de r?seau: enseignements du r?seau postal," Working Papers 0015, Swiss Economics.
    12. Sandra Jódar-Rosell & Jordi Gual, 2010. "The Strange Couple: Regulation and Competition Policy in Network Industries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(03), pages 19-23, October.
    13. Xie, Li & Kong, Chun, 2023. "The social welfare effect of electricity user connection price policy reform," Applied Energy, Elsevier, vol. 346(C).
    14. Axel Gautier & Xavier Wauthy, 2010. "Price competition under universal service obligations," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(3), pages 311-326, September.
    15. Philippe De Donder & Helmuth Cremer & Paul Dudley & Frank Rodriguez, 2010. "Welfare and profit implications for changes in service specifi cation within the universal service," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Heightening Competition in the Postal and Delivery Sector, chapter 11, Edward Elgar Publishing.
    16. Jaag Christian, 2013. "Price Regulation and the Financing of Universal Services in Network Industries," Review of Law & Economics, De Gruyter, vol. 9(1), pages 125-150, September.
    17. Joan Calzada, 2009. "Access charges under two-tier pricing," Journal of Regulatory Economics, Springer, vol. 35(3), pages 296-311, June.
    18. Marzena Jarosik & John Nankervis & Jonathan Pope & Soterios Soteri & Leticia Veruete-McKay, 2013. "Letter traffic demand in the UK: some new evidence and review of econometric analysis over the past decade," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Reforming the Postal Sector in the Face of Electronic Competition, chapter 14, pages 194-210, Edward Elgar Publishing.
    19. Frédérique Fève & Jean-Pierre Florens & Leticia Veruete-McKay & Frank Rodriguez & Soterios Steri & Frank Rodriguez, 2012. "Uncertainty and Projections of the Demand for Mail," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Multi-Modal Competition and the Future of Mail, chapter 6, Edward Elgar Publishing.
    20. Leticia Veruete-McKay & Robert Sheldon & Peter Burge & Alison Lawrence, 2013. "Electronic substitution and postal price elasticities: a customer market approach," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Reforming the Postal Sector in the Face of Electronic Competition, chapter 16, pages 226-240, Edward Elgar Publishing.
    21. Armstrong Mark, 2008. "Access Pricing, Bypass and Universal Service in Post," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-16, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:rneart:v:10:y:2011:i:3:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.