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Pricing in competitive two-sided mail markets

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  • Christian Jaag
  • Urs Trinkner

Abstract

The paper analyzes optimal pricing strategies in liberalized two-sided mail markets. Our results tell a cautionary tale with respect to applying two-part tariffs in postal markets, especially for delivery into P.O. box es.

Suggested Citation

  • Christian Jaag & Urs Trinkner, 2007. "Pricing in competitive two-sided mail markets," Working Papers 0007, Swiss Economics, revised Jul 2007.
    • Handle: RePEc:chc:wpaper:0007
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    File URL: http://www.swiss-economics.ch/RePEc/files/0007JaagTrinkner.pdf
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    References listed on IDEAS

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    1. Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: I. Overview and Nondiscriminatory Pricing," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 1-37, Spring.
    2. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    3. Jean‐Charles Rochet & Jean Tirole, 2006. "Two‐sided markets: a progress report," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 645-667, September.
    4. Helmut M. Dietl & Urs Trinkner & Reto Bleisch, 2005. "Liberalization and Regulation of the Swiss Letter Market," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Regulatory and Economic Challenges in the Postal and Delivery Sector, chapter 0, pages 53-72, Springer.
    5. Christian Jaag, 2007. "Liberalization of the Swiss Letter Market and the Viability of Universal Service Obligations," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(III), pages 261-282, September.
    6. Cátia Felisberto & Matthias Finger & Beat Friedli & Daniel Krähenbühl & Urs Trinkner, 2006. "Pricing the Last Mile in the Postal Sector," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Progress toward Liberalization of the Postal and Delivery Sector, chapter 0, pages 249-264, Springer.
    7. Beat Friedli & Christian Jaag & Daniel Krähenbühl & Ole Bach Nielsen & Søren-Michael Pihl & Urs Trinkner, 2006. "Consumer Preferences and Last Mile Pricing in the Postal Sector," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Liberalization of the Postal and Delivery Sector, chapter 21, pages 343-356, Edward Elgar Publishing.
    8. Mark Armstrong Author-Email: mark.armstrong@ucl.ac.uk Author-Workplace-Name: University College of London, 2006. "Competition in Two-Sided Markets," RAND Journal of Economics, The RAND Corporation, vol. 37(3), pages 668-691, Autumn.
    9. Urs Trinkner & Martin Grossmann, 2006. "Forecasting Swiss Mail Demand," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Progress toward Liberalization of the Postal and Delivery Sector, chapter 0, pages 267-280, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Christian Jaag & Urs Trinkner, 2011. "A General Framework for Regulation and Liberalization in Network Industries," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 3, Edward Elgar Publishing.
    2. Martin Maegli & Christian Jaag & Matthias Finger, 2009. "Co?ts de la r?gulation des industries de r?seau: enseignements du r?seau postal," Working Papers 0015, Swiss Economics.
    3. Christian Jaag, 2007. "Liberalization of the Swiss Letter Market and the Viability of Universal Service Obligations," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(III), pages 261-282, September.
    4. Andreas Haller & Christian Jaag & Urs Trinkner, 2013. "Termination charges in the international parcel market," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Reforming the Postal Sector in the Face of Electronic Competition, chapter 19, pages 277-293, Edward Elgar Publishing.
    5. Vincenzo Visco Comandini, 2007. "Servizi postali," Rivista di Politica Economica, SIPI Spa, vol. 97(4), pages 257-314, July-Agou.
    6. M. Maegli & C. Jaag & M. Finger, 2010. "Regulatory Governance Costs in Network Industries: Observations in Postal Regulation," Competition and Regulation in Network Industries, Intersentia, vol. 11(2), pages 207-238, June.
    7. Urs Trinkner & Bernd Holznagel & Christian Jaag & Helmut Dietl & Haller Andreas, 2012. "Möglichkeiten eines gemeinsam definierten Universaldienst Post und Telekommunikation aus ökonomischer und juristischer Sicht," Studies and Reports, Swiss Economics, pages 1-79, September.
    8. Jaag, Christian, 2014. "Postal-sector policy: From monopoly to regulated competition and beyond," Utilities Policy, Elsevier, vol. 31(C), pages 266-277.
    9. Christian Jaag & Urs Trinkner, 2011. "The future of the USO - Economic rationale for universal services and implications for a future-oriented USO," Working Papers 0026, Swiss Economics.
    10. Vincenzo Visco Comandini & Adolfo Consiglio & Stefano Gori & Emiliano Piccinin & Maria Rita Pierleoni, 2010. "The Altmark Ruling and Approaches to Measuring Efficiency of Postal Operators," Chapters, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Heightening Competition in the Postal and Delivery Sector, chapter 5, Edward Elgar Publishing.
    11. Matthias Finger & Christian Jaag & Markus Lang & Martin Lutzenberger & Urs Trinkner, 2009. "Bestimmung des Regulierungsbedarfs aus ökonomischer Sicht: Angemessenheit und Folgen einer funktionalen oder strukturellen Trennung von Swisscom," Studies and Reports, Swiss Economics, pages 1-92, February.
    12. Maegli, Martin & Jaag, Christian, 2009. "Regulatory Governance Costs in Network Industries: Implicatins for postal Regulation," MPRA Paper 15309, University Library of Munich, Germany.
    13. Christian Jaag & Urs Trinkner, 2012. "Defining and financing an intermodal USO," Working Papers 0035, Swiss Economics.
    14. Helmut M. Dietl & Urs Trinkner, 2008. "Developing Universal Postal Services in Latin America ? an Economic Perspective," Working Papers 0012, Swiss Economics, revised Nov 2008.

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    More about this item

    Keywords

    two-sided markets; pricing; two-part tariffs; P.O. box;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation

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