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Worksharing, access and bypass: the structure of prices in the postal sector

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Author Info
E. Villemeur ()
Helmuth Cremer
Bernard Roy
Joëlle Toledano

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Abstract

This paper studies a liberalized postal market where entrants may offer end-to-end products or concentrate on one of the segments of the network. Absent effective bypass, entry does not appear to be a serious financial threat to the incumbent, even when the products are perfect substitutes. This is no longer true when the entrant offers cheaper service in delivery. Then, the universal service provider may loose the entire pre-sorted mail market. It is left with probably low volume demand from households and from firms with high preparation cost, and its financial viability may be jeopardized. Copyright Springer Science+Business Media, LLC 2007

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File URL: http://hdl.handle.net/10.1007/s11149-007-9024-1
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Publisher Info
Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 32 (2007)
Issue (Month): 1 (August)
Pages: 67-85
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:regeco:v:32:y:2007:i:1:p:67-85

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Web page: http://www.springerlink.com/link.asp?id=100298

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Related research
Keywords: Postal sector; Liberalization; Universal service; Access; Bypass; L51; L87; L32;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Laffont, Jean-Jacques & Tirole, Jean, 1996. "Creating Competition through Interconnection: Theory and Practice," Journal of Regulatory Economics, Springer, vol. 10(3), pages 227-56, November.
  2. Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany. [Downloadable!]
  3. Cremer, Helmuth & De Villemeur, Étienne & Roy, Bernard & Toledano, Joëlle, 2004. "Worksharing, Pricing and Competition in the Postal Market," IDEI Working Papers 302, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  4. Sherman, Roger, 2001. "Optimal Worksharing Discounts," Journal of Regulatory Economics, Springer, vol. 19(1), pages 81-92, January. [Downloadable!] (restricted)
  5. Cremer, Helmuth, et al, 2001. "Entry and Competition in the Postal Market: Foundations for the Construction of Entry Scenarios," Journal of Regulatory Economics, Springer, vol. 19(2), pages 107-21, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Francis Bloch & Axel Gautier, 2008. "Access Pricing and Entry in the Postal Sector," Review of Network Economics, Concept Economics, vol. 7(2), pages 207-230, June. [Downloadable!]
    Other versions:
  2. Etienne Billette De Villemeur & Helmuth Cremer & Francois Boldron & Bernard Roy, 2008. "Worksharing: A Calibrated Model," Review of Network Economics, Concept Economics, vol. 7(2), pages 272-293, June. [Downloadable!]
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