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

Author

Listed:
  • Etienne Billette de Villemeur

    (UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse)

  • Helmut Cremer

    (Groupe de recherche en économie mathématique et quantitative - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique, UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse)

  • Bernard Roy

    (La poste)

  • Joëlle Toledano

    (Ecole Supérieure d'Electricité - SUPELEC (FRANCE))

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.

Suggested Citation

  • Etienne Billette de Villemeur & Helmut Cremer & Bernard Roy & Joëlle Toledano, 2007. "Worksharing, access and bypass: the structure of prices in the postal sector," Post-Print hal-02665882, HAL.
    • Handle: RePEc:hal:journl:hal-02665882
    DOI: 10.1007/s11149-007-9024-1
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    Cited by:

    1. Michael D. Bradley & Jeff L. Colvin & Norma B. Nieto & Daniel J. Tobias, 2010. "Estimating the impact of a uniform price rule in a liberalized postal environment: the case of the United States Postal Service," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Heightening Competition in the Postal and Delivery Sector, chapter 13, Edward Elgar Publishing.
    2. Gautier Axel & Poudou Jean-Christophe, 2014. "Reforming the Postal Universal Service," Review of Network Economics, De Gruyter, vol. 13(4), pages 453-477, December.
    3. Bloch Francis & Gautier Axel, 2008. "Access Pricing and Entry in the Postal Sector," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-24, June.

    More about this item

    Keywords

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    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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