In:
Swiss Journal of Economics and Statistics, Springer Science and Business Media LLC, Vol. 144, No. 1 ( 2008-01), p. 37-55
Abstract:
We develop an industry specific model of price competition with product differentiation to analyze the effect of entry regulation on process innovation in the Swiss mail industry. We consider the four most prominent scenarios: Regulated monopoly, end-to-end competition, worksharing without bypass, and work-sharing with bypass. Based on model calibration with data from the Swiss letter market, we find that the incentives to invest in process innovations decrease with deregulation. However, even accounting for this fact, the efficiency gains of a partial liberalization, i.e. worksharing, ensure an increase in social welfare.
Type of Medium:
Online Resource
ISSN:
2235-6282
Language:
English
Publisher:
Springer Science and Business Media LLC
Publication Date:
2008
detail.hit.zdb_id:
200233-4
detail.hit.zdb_id:
2241129-X
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