Helmuth Cremer, Philippe De Donder, Paul Dudley, and Frank Rodriguez, Welfare and Pricing of Mail in a Communications Market, IDEI Working Paper, n. 601, April 2, 2010.


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.

Research partnership