Worksharing: A Calibrated Model
This paper studies the price structure in a postal sector with a monopolistic operator when customers can engage in worksharing. It presents simulation results obtained from an empirical model that is calibrated on data from the French postal sector. The optimal worksharing discount is significantly larger than the avoided costs. Consequently, the appropriate pricing structure differs markedly from the often recommended ECPR policy.
Volume (Year): 7 (2008)
Issue (Month): 2 (June)
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