Worksharing: A Calibrated Model

Review of Network Economics, Vol. 7, No. 2, pp. 272-293, June 2008

22 Pages Posted: 12 Jun 2008 Last revised: 1 Sep 2016

Etienne Billette de Villemeur

University of Lille I - EQUIPPE

Helmuth Cremer

University of Toulouse (GREMAQ & IDEI); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Francois Boldron

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE)

Bernard Roy

La Poste

Date Written: June 10, 2008

Abstract

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.

Keywords: Postal sector, Worksharing, Calibration

JEL Classification: L51, L87, L32

Suggested Citation

Billette de Villemeur, Etienne and Cremer, Helmuth and Boldron, Francois and Roy, Bernard, Worksharing: A Calibrated Model (June 10, 2008). Review of Network Economics, Vol. 7, No. 2, pp. 272-293, June 2008. Available at SSRN: https://ssrn.com/abstract=1143546

Etienne Billette de Villemeur (Contact Author)

University of Lille I - EQUIPPE ( email )

Université Lille 1 Sciences et Technologies
Faculté des Sciences Economiques et Sociales
Villeneuve d'Ascq, 59655
France

Helmuth Cremer

University of Toulouse (GREMAQ & IDEI) ( email )

Toulouse, 31000
France
+33 1 6112 8606 (Phone)
+33 1 6112 8637 (Fax)

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Francois Boldron

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE) ( email )

34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, b-1348
Belgium

Bernard Roy

La Poste ( email )

France

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