Welfare and Pricing of Mail in a Communications Market
We build a model where a postal incumbent offering single piece, transactional and advertising mail competes with postal entrants and with a firm offering an alternative medium. We solve for the optimal prices under various competition assumptions. We calibrate the model and provide numerical simulations in order to shed light on the impact of these assumptions on volumes and welfare levels.
|Date of creation:||02 Apr 2010|
|Publication status:||Published in The Review of Network Economics, vol. 10, n°3, 2011.|
|Contact details of provider:|| Postal: Manufacture des Tabacs, Aile Jean-Jacques Laffont, 21 Allée de Brienne, 31000 TOULOUSE|
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- Philippe Donder, 2006. "Access Pricing in the Postal Sector: Theory and Simulations," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(3), pages 307-326, 05.
- Veruete-McKay Leticia & Soteri Soterios & Nankervis John C. & Rodriguez Frank, 2011. "Letter Traffic Demand in the UK: An Analysis by Product and Envelope Content Type," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-28, September.
- Armstrong Mark, 2008.
"Access Pricing, Bypass and Universal Service in Post,"
Review of Network Economics,
De Gruyter, vol. 7(2), pages 1-16, June.
- Armstrong, Mark, 2006. "Access pricing, bypass and universal service in post," MPRA Paper 62, University Library of Munich, Germany.
- De Donder, Philippe, 2006. "Access Pricing in the Postal Sector," IDEI Working Papers 319, Institut d'Économie Industrielle (IDEI), Toulouse. Full references (including those not matched with items on IDEAS)
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