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Access Pricing, Bypass and Universal Service in Post

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  • Armstrong Mark

    ()
    (University College London)

Abstract

A postal regulator typically faces two issues which make the design of efficient access pricing especially difficult and which complicate the process of liberalizing the industry. First, universal service obligations, together with the presence of fixed costs, require retail prices to depart from the underlying marginal costs of the incumbent provider. Second, competing firms may be able to bypass the incumbent's delivery network. Within a simple and stylized framework, this note analyzes how access charges should best be set in the light of these twin constraints.

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Bibliographic Info

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

Volume (Year): 7 (2008)
Issue (Month): 2 (June)
Pages: 1-16

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Handle: RePEc:bpj:rneart:v:7:y:2008:i:2:n:1

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  1. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509, December.
  2. Mark Armstrong, 2001. "Access Pricing, Bypass, and Universal Service," American Economic Review, American Economic Association, vol. 91(2), pages 297-301, May.
  3. Armstrong, M. & Doyle, C. & Vickers, J., 1995. "The access pricing problem: a synthesis," Discussion Paper Series In Economics And Econometrics 9532, Economics Division, School of Social Sciences, University of Southampton.
  4. Peter A. Diamond & J. A. Mirrlees, 1968. "Optimal Taxation and Public Production," Working papers 22, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. De Donder, Philippe, 2006. "Access Pricing in the Postal Sector," IDEI Working Papers 319, Institut d'Économie Industrielle (IDEI), Toulouse.
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Cited by:
  1. Christian Jaag, 2013. "Price Regulation and the Financing of Universal Services in Network Industries," Working Papers 0039, Swiss Economics.
  2. Valentiny, Pál & Kiss, Károly Miklós, 2009. "A nélkülözhetetlen eszközök értelmezése és a postai szolgáltatások
    [The interpretation of essential facilities and the postal services]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1001-1024.
  3. Cremer, Helmuth & De Donder, Philippe & Dudley, Paul & Rodriguez, Frank, 2010. "Welfare and Pricing of Mail in a Communications Market," TSE Working Papers 10-148, Toulouse School of Economics (TSE).
  4. Markus Lang & Marc Laperrouza & Matthias Finger, 2010. "Competition Effects in a Liberalized Railway Market," Working Papers 0131, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Apr 2011.
  5. De Donder Phillippe & Cremer Helmuth & Dudley Paul & Rodriguez Frank, 2008. "Price Controls in the Postal Sector: A Welfare Analysis of Alternative Control Structures," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-25, June.

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