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.
Year of publication: |
2010-04-02
|
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Authors: | Cremer, Helmuth ; De Donder, Philippe ; Dudley, Paul ; Rodriguez, Frank |
Institutions: | Institut d'Économie Industrielle (IDEI), Toulouse School of Economics (TSE) |
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