Worksharing and Access Discounts in the Postal Sector with Asymmetric Information
AbstractThis paper analyzes the optimal worksharing and access amounts granted to mailers and entrants in a liberalized postal sector when there is asymmetric information about the Post Office’s (PO) costs. I show that when the regulator is unable to ascertain which part of the total cost of sorting has to be attributed to each sorting facility, the optimal “access discount” given to entrants is set in a pro-competitive way. This facilitates the entry of firms that are less efficient than the PO. However, the optimal “worksharing discount” may prevent the entry of mailers that are more efficient than the PO. Copyright Springer Science+Business Media, Inc. 2006
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Bibliographic InfoArticle provided by Springer in its journal Journal of Regulatory Economics.
Volume (Year): 29 (2006)
Issue (Month): 1 (01)
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Web page: http://www.springerlink.com/link.asp?id=100298
access pricing; worksharing discounts; competition; postal; D43; L51;
Other versions of this item:
- Joan Calzada Aymerich, 2004. "Worksharing and access discounts in the postal sector with asymmetrics information," Working Papers in Economics 112, Universitat de Barcelona. Espai de Recerca en Economia.
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
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