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Worksharing: A Calibrated Model

Author

Listed:
  • De Villemeur Etienne Billette

    (Toulouse School of Economics (IDEI and GREMAQ))

  • Cremer Helmuth

    (Toulouse School of Economics (IDEI and GREMAQ))

  • Boldron Francois

    (La Poste)

  • Roy Bernard

    (La Poste)

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.

Suggested Citation

  • De Villemeur Etienne Billette & Cremer Helmuth & Boldron Francois & Roy Bernard, 2008. "Worksharing: A Calibrated Model," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-22, June.
    • Handle: RePEc:bpj:rneart:v:7:y:2008:i:2:n:6
    DOI: 10.2202/1446-9022.1149
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    Cited by:

    1. Jaag, Christian, 2014. "Postal-sector policy: From monopoly to regulated competition and beyond," Utilities Policy, Elsevier, vol. 31(C), pages 266-277.
    2. Axel Gautier & Keizo Mizuno, 2011. "Gradual Network Expansion And Universal Service Obligations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(2), pages 97-113, June.
    3. Jaag Christian, 2013. "Price Regulation and the Financing of Universal Services in Network Industries," Review of Law & Economics, De Gruyter, vol. 9(1), pages 125-150, September.

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