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Worksharing: A Calibrated Model

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Author Info

  • Etienne Billette De Villemeur

    (Toulouse School of Economics (IDEI and GREMAQ))

  • Helmuth Cremer

    (Toulouse School of Economics (IDEI and GREMAQ))

  • Francois Boldron

    (La Poste)

  • Bernard Roy

    (La Poste)

Abstract

This paper studies the price structure in a postal sector with a monopolistic operator when customers can engage in worksharing. It presents simulation results obtained from an empirical model that is calibrated on data from the French postal sector. The optimal worksharing discount is significantly larger than the avoided costs. Consequently, the appropriate pricing structure differs markedly from the often recommended ECPR policy.

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File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1149&context=rne
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Bibliographic Info

Article provided by De Gruyter in its journal Review of Network Economics.

Volume (Year): 7 (2008)
Issue (Month): 2 ()
Pages: 6

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Handle: RePEc:bpj:rneart:v:7:y:2008:i:2:n:6

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Web page: http://www.degruyter.com

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Web: http://www.degruyter.com/view/j/rne

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Cited by:
  1. Axel Gautier & Keizo Mizuno, 2011. "Gradual Network Expansion And Universal Service Obligations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(2), pages 97-113, 06.

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