Worksharing and access discounts in the postal sector with asymmetrics information
AbstractThis 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 InfoPaper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 112.
Length: 41 pages
Date of creation: 2004
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Other versions of this item:
- Joan Calzada, 2006. "Worksharing and Access Discounts in the Postal Sector with Asymmetric Information," Journal of Regulatory Economics, Springer, vol. 29(1), pages 69-102, 01.
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
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