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Worksharing and access discounts in the postal sector with asymmetrics information

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  • Joan Calzada Aymerich

    (Universitat de Barcelona)

Abstract

This paper analyses the optimal worksharing discount granted to mailers and entrants in a liberalized postal sector when there is asymmetric information about the Post Offices costs. 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 the entrants is set in a procompetitive way, thus facilitating the entry of firms that are less efficient than the Post Office. However, with the same asymmetry of information, the optimal worksharing discount given to the mailers is set to favor the Post Office, even when it is less efficient than the mailers in providing the sorting.

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Bibliographic Info

Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 112.

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Length: 41 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:bar:bedcje:2004112

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Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.
Web page: http://www.ere.ub.es
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  1. Caillaud, Bernard, 1990. "Regulation, competition, and asymmetric information," Journal of Economic Theory, Elsevier, vol. 52(1), pages 87-110, October.
  2. Armstrong, Mark & Doyle, Chris & Vickers, John, 1996. "The Access Pricing Problem: A Synthesis," Journal of Industrial Economics, Wiley Blackwell, vol. 44(2), pages 131-50, June.
  3. De Fraja, Gianni, 1995. "Regulation and Access Pricing with Asymmetric Information," CEPR Discussion Papers 1122, C.E.P.R. Discussion Papers.
  4. Laffont, Jean-Jacques & Tirole, Jean, 1990. "Optimal Bypass and Cream Skimming," American Economic Review, American Economic Association, vol. 80(5), pages 1042-61, December.
  5. J-J. Laffont & J. Tirole, 1994. "Access Pricing and Competition," Working papers 95-11, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Sherman, Roger, 2001. "Optimal Worksharing Discounts," Journal of Regulatory Economics, Springer, vol. 19(1), pages 81-92, January.
  7. Laffont, Jean-Jacques & Tirole, Jean, 1986. "Using Cost Observation to Regulate Firms," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 614-41, June.
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Cited by:
  1. Helmut M. Dietl & Urs Trinkner, 2008. "Developing Universal Postal Services in Latin America – an Economic Perspective," Working Papers 0012, Swiss Economics, revised Nov 2008.
  2. Philippe Donder, 2006. "Access Pricing in the Postal Sector: Theory and Simulations," Review of Industrial Organization, Springer, vol. 28(3), pages 307-326, 05.

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