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Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All

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Author Info

  • Gautier Axel

    (University of Liège and CORE)

  • Paolini Dimitri

    (Università degli Studi di Sassari, CRENoS and CORE)

Abstract

In the postal sector, the financial burden of the universal service depends on its content, the postal market characteristics and the country’s geographical configuration. These three groups of factors affect both the direct cost of providing the service and the extent of competition on the market. In this paper, we consider countries with different geographical characteristics and we show that the choice of an appropriate mechanism to share the burden of universal service between market participants depends on the country configuration. Thus, for universal service financing, one size does not fit all.

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File URL: http://www.degruyter.com/view/j/rne.2011.10.issue-3/1446-9022.1227/1446-9022.1227.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal Review of Network Economics.

Volume (Year): 10 (2011)
Issue (Month): 3 (September)
Pages: 1-30

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Handle: RePEc:bpj:rneart:v:10:y:2011:i:3:n:6

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References

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  1. D’ALCANTARA, Gonzales & GAUTIER, Axel, . "National postal strategies after a full postal market opening," CORE Discussion Papers RP -2006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Philippe Choné & Laurent Flochel & Anne Perrot, 1999. "Allocating and Funding Universal Service Obligations in a Competitive Network Market," Working Papers 99-55, Centre de Recherche en Economie et Statistique.
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Cited by:
  1. Christian Jaag & Urs Trinkner, 2011. "The interaction between universal service costing and financing in the postal sector: a calibrated approach," Journal of Regulatory Economics, Springer, vol. 39(1), pages 89-110, February.
  2. Christian Jaag, 2013. "Price Regulation and the Financing of Universal Services in Network Industries," Working Papers 0039, Swiss Economics.
  3. GAUTIER, Axel & WAUTHY, Xavier Yves, . "Competitively neutral universal service obligations," CORE Discussion Papers RP -2455, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. GAUTIER, Axel & POUDOU, Jean-Christophe, 2013. "Reforming the postal universal service," CORE Discussion Papers 2013024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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