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Entry and Competition in the Postal Market: Foundations for the Construction of Entry Scenarios

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  • Cremer, Helmuth, et al

Abstract

This paper presents a model of entry and imperfect competition, which is inspired by the product differentiation literature and incorporates facts pertaining to the postal sector. There are two operators: incumbent and potential entrant. The entrant offers only one of the products (commercial mail) with a specific technology and delivers only to part of the addressees (located in low cost areas). Its degree of coverage is viewed as a quality attribute; it affects demand and hence market share. The incumbent faces a USO while the entrant is an unregulated profit maximizing firm. To illustrate the potential applications of our approach, we provide some numerical simulations of entry scenarios. Copyright 2001 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 19 (2001)
Issue (Month): 2 (March)
Pages: 107-21

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Handle: RePEc:kap:regeco:v:19:y:2001:i:2:p:107-21

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Web page: http://www.springerlink.com/link.asp?id=100298

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Cited by:
  1. Etienne Billette de Villemeur & Helmut Cremer & Bernard Roy & Joëlle Toledano, 2007. "Worksharing, access and bypass: the structure of prices in the postal sector," Working Papers 20183, Institut National de la Recherche Agronomique, France.
  2. Cremer, Helmuth & Roy, Bernard & Toledano, Joëlle & de Villemeur, Étienne, 2004. "Worksharing, Pricing and Competition in the Postal Market," IDEI Working Papers 302, Institut d'Économie Industrielle (IDEI), Toulouse.
  3. Calzada, Joan, 2009. "Universal service obligations in the postal sector: The relationship between quality and coverage," Information Economics and Policy, Elsevier, vol. 21(1), pages 10-20, February.
  4. Angela S. Bergantino & Etienne Billette De Villemeur & Annalisa Vinella, 2011. "Partial Regulation in Vertically Differentiated Industries," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(2), pages 255-287, 04.
  5. Luis Fernando Gamboa Niño & Leslie Bravo Chew, 2005. "Subsidios cruzados: el caso del sector postal," BORRADORES DE INVESTIGACIÓN 003530, UNIVERSIDAD DEL ROSARIO.
  6. Angela S. Bergantino & Etienne Billette de Villemeur & Annalisa Vinella, 2006. "A Model of Partial Regulation in the Maritime Ferry Industry," series 0010, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Jan 2006.
  7. Damien Broussolle, 2007. "Full Market Opening In The Postal Services Facing The Social And Territorial Cohesion Goal In France," Working Papers of LaRGE Research Center 2007-07, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg (France).
  8. Cremer, Helmuth & Roy, Bernard & Toledano, Joëlle & de Villemeur, Étienne, 2003. "Access Pricing and Imperfect Competition," IDEI Working Papers 217, Institut d'Économie Industrielle (IDEI), Toulouse.

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