Forty percent of first-class mail is workshared, meaning that mailers perform part of the postal service work, such as sorting, in exchange for a price discount. Here the optimal discount is shown to depend on whether mailers workshare all their mail. If they do, their marginal decisions will...

When demand is stochastic, a monopoly offering several product varieties, each at a preannounced price, can profitably discriminate in price if nonprice rationing mechanisms, such as queuing or reservations, can determine the order in which consumers are served. But in such circumstances the...