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The effect of entry regulation on process innovation in the swiss mail industry


Dietl, H; Finger, M; Felisberto, C; Lutzenberger, M; Grütter, A (2008). The effect of entry regulation on process innovation in the swiss mail industry. Schweizerische Zeitschrift für Volkswirtschaft und Statistik = Swiss journal of economics and statistics, 144(Beitra):37-55.

Abstract

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.

Abstract

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.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:2008
Deposited On:23 Jan 2009 15:42
Last Modified:05 Apr 2016 12:51
Publisher:Schweizerische Gesellschaft für Volkswirtschaft und Statistik = Swiss Society of Economics and Statistics
ISSN:0303-9692
Additional Information:Free full text article
Official URL:http://www.sjes.ch/papers/2008-I-2.pdf
Related URLs:http://www.sjes.ch/published_d.php?PaperNr=2008-I-2&Year=2008 (Publisher)

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