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Welfare and Pricing of Mail in a Communications Market

Philippe De Donder, Helmuth Cremer, Dudley Paul and Rodriguez Frank
Additional contact information
Dudley Paul: Royal Mail Group
Rodriguez Frank: Oxera

Review of Network Economics, 2011, vol. 10, issue 3, 24

Abstract: 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.

Keywords: non direct mail; substitution; displacement ratio; Ramsey prices; calibration (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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Working Paper: Welfare and Pricing of Mail in a Communications Market (2010) Downloads
Working Paper: Welfare and Pricing of Mail in a Communications Market (2010) Downloads
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DOI: 10.2202/1446-9022.1223

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