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What is an Unfair Burden? Compensating the Net Cost of Universal Service Provision

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  • Jaag Christian

    (Swiss Economics and University of St. Gallen)

Abstract

This paper discusses the net cost of universal service obligations and the potential burden they represent on the universal service provider. Specifically, it analyzes the situation in the postal sector after full liberalization. It considers various interpretations of what an unfair burden might be and discusses the competitive impact of corresponding compensation scenarios by means of a stylized theoretical model with endogenous entry and coverage decisions.

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File URL: http://www.degruyter.com/view/j/rne.2011.10.issue-3/1446-9022.1225/1446-9022.1225.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: 1-32

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Handle: RePEc:bpj:rneart:v:10:y:2011:i:3:n:7

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Cited by:
  1. GAUTIER, Axel & WAUTHY, Xavier, 2010. "Competitively neutral universal service obligations," CORE Discussion Papers 2010061, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Jaag Christian, 2013. "Price Regulation and the Financing of Universal Services in Network Industries," Review of Law & Economics, De Gruyter, vol. 9(1), pages 125-150, September.
  3. Koski, Heli, 2013. "The Impact of the USO on the Profitability of Postal Service Provision in Finland," ETLA Working Papers 22, The Research Institute of the Finnish Economy.
  4. Jean-Christophe Poudou & Michel Roland, 2013. "Efficiency of Uniform Pricing in Universal Service Obligation," Working Papers 13-13, LAMETA, Universtiy of Montpellier, revised Nov 2013.

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