|
|
|
|
||||
|
||||
Optimal Pricing and Price-Cap Regulation in the Postal SectorEtienne Billette de VillemeurUniversity of Lille I - EQUIPPE Helmuth CremerUniversity of Toulouse (GREMAQ & IDEI); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Bernard RoyLa Poste Joëlle ToledanoSupelec Journal of Regulatory Economics, Vol. 24, No. 1, 2003 Abstract: This paper studies the optimal price structure in the postal sector when worksharing is available (e.g., for collection, sorting and transportation) and when the operator faces a break-even constraint. Users differ in opportunity and cost to engage in worksharing. We determine the optimal worksharing discount and provide sufficient conditions (on demand functions) under which it exceeds the ECPR level. Furthermore, we show that the optimal prices can be implemented through a global price cap imposed on a weighted average of the prices of all products. The appropriate weights are proportional to the market demand (evaluated at optimal prices) of the corresponding products.
Number of Pages in PDF File: 14 Keywords: Regulation, Postal Sector. JEL Classification: L51 Accepted Paper SeriesDate posted: September 17, 2007Suggested CitationContact Information
|
|
||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo2 in 0.531 seconds
