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Welfare and Pricing of Mail in a Communications Market
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Philippe De Donder
Published/Copyright:
September 12, 2011
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.
Published Online: 2011-9-12
©2012 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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- Competition, Pricing and Universal Service in the Postal Sector: An Introduction
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- The Effect of Flexible Pricing on Entry into the U.S. Letter Market
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Keywords for this article
non direct mail;
substitution;
displacement ratio;
Ramsey prices;
calibration
Articles in the same Issue
- Editorial Introduction
- Competition, Pricing and Universal Service in the Postal Sector: An Introduction
- Article
- Postal Service Pricing Incentives Following the Introduction of Price Cap Regulation
- The Effect of Flexible Pricing on Entry into the U.S. Letter Market
- Welfare and Pricing of Mail in a Communications Market
- Environmental Cost and Universal Service Obligations in the Postal Sector
- Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All
- What is an Unfair Burden? Compensating the Net Cost of Universal Service Provision
- The Universal Postal Service after the Lisbon Treaty: a True Step Forward?
- The Effect of Unobserved Heterogeneity in Stochastic Frontier Estimation: Comparison of Cross Section and Panel with Simulated Data for the Postal Sector
- Letter Traffic Demand in the UK: An Analysis by Product and Envelope Content Type
