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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title The effect of entry regulation on process innovation in the swiss mail industry
Organization Unit
Authors
  • Helmut Max Dietl
  • M Finger
  • C Felisberto
  • M Lutzenberger
  • A Grütter
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Schweizerische Zeitschrift für Volkswirtschaft und Statistik = Swiss journal of economics and statistics
Publisher Schweizerische Gesellschaft für Volkswirtschaft und Statistik = Swiss Society of Economics and Statistics
Geographical Reach international
ISSN 0303-9692
Volume 144
Number Beitra
Page Range 37 - 55
Date 2008
Abstract Text We develop an industry specific modeö of proce 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 worksharing with bypass. Based on model calibration with data from the Swiss letter market, we find that the incentives to invest in process innovation decrease with deregulation. However, even accounting for this fact, the efficiency gains from partial liberalization, i.e. worksharing, ensure an increase in social welfare.
Official URL http://www.sjes.ch/papers/2008-I-2.pdf
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