Worksharing, Access and Bypass: The Structure of Prices in the Postal Sector

19 Pages Posted: 12 Jun 2008 Last revised: 1 Sep 2016

See all articles by Etienne Billette de Villemeur

Etienne Billette de Villemeur

Lille University; CNRS - Lille Economics & Managment - UMR 9221

Helmuth Cremer

University of Toulouse (GREMAQ & IDEI); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Bernard Roy

La Poste

Joëlle Toledano

Supelec

Date Written: 2007

Abstract

This paper studies a liberalized postal market where entrants may offer end-to-end products or concentrate on one of the segments of the network. Absent effective bypass, entry does not appear to be a serious financial threat to the incumbent, even when the products are perfect substitutes. This is no longer true when the entrant offers cheaper service in delivery. Then, the universal service provider may loose the entire pre-sorted mail market. It is left with probably low volume demand from households and from firms with high preparation cost, and its financial viability may be jeopardized.

Keywords: Postal sector, Liberalization, Universal service, Access, Bypass

JEL Classification: L51, L87, L32

Suggested Citation

Billette de Villemeur, Etienne and Cremer, Helmuth and Roy, Bernard and Toledano, Joëlle, Worksharing, Access and Bypass: The Structure of Prices in the Postal Sector (2007). Journal of Regulatory Economics, Vol. 32, No. 1, 2007, Available at SSRN: https://ssrn.com/abstract=1143515

Etienne Billette de Villemeur (Contact Author)

Lille University ( email )

Lille
France

CNRS - Lille Economics & Managment - UMR 9221 ( email )

Lille
France

Helmuth Cremer

University of Toulouse (GREMAQ & IDEI) ( email )

Toulouse, 31000
France
+33 1 6112 8606 (Phone)
+33 1 6112 8637 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Bernard Roy

La Poste ( email )

France

Joëlle Toledano

Supelec ( email )

Plateau du Moulon
3 rue Joliot-Curie
Gif sur Yvette Cedex, 91192
France

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