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Quality and Pricing of Delivery Services in the E-commerce Sector

In: Postal and Delivery Innovation in the Digital Economy

Author

Listed:
  • Claire Borsenberger

    (Groupe La Poste
    affiliated to the Laboratoire d’Economie d’Orléans)

  • Helmuth Cremer

    (Toulouse School of Economics (IDEI, GREMAQ and IuF))

  • Philippe Donder

    (Toulouse School of Economics (IDEI and GREMAQ-CNRS))

  • Denis Joram

    (Groupe La Poste)

Abstract

We study the delivery market for e-commerce products, with two technologies: home delivery and delivery to a relay point. Taste differences for these are represented by a Hotelling model. Operators choose the (costly) quality of their delivery service. We study a single operator who uses both technologies and a duopoly with two single-technology operators. The home delivery operator may or may not be regulated; the relay operator is not regulated. We study pricing policies and the impact of competition on welfare. We also show that quality regulation may have an adverse effect on welfare.

Suggested Citation

  • Claire Borsenberger & Helmuth Cremer & Philippe Donder & Denis Joram, 2015. "Quality and Pricing of Delivery Services in the E-commerce Sector," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Timothy J. Brennan (ed.), Postal and Delivery Innovation in the Digital Economy, edition 127, pages 77-90, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-12874-0_7
    DOI: 10.1007/978-3-319-12874-0_7
    as

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