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Access Pricing in the Postal Sector: Theory and Simulations

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Author Info
Philippe Donder ()

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Abstract

This paper studies a theoretical model aimed at assessing the optimal access charges and retail prices in the postal sector. It takes explicitly into account three main characteristics of the postal sector: the ability of entrants to bypass the incumbent’s delivery network; the imposition on the incumbent, but not on entrants of universal service obligations; and the provision of access to both competitors and customers. The paper first develops analytical formulations of the optimal access charges and the incumbent’s end-to-end retail price. It then presents calibrated results illustrating the impact on prices and welfare of various scenarios. Copyright Springer 2006

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File URL: http://hdl.handle.net/10.1007/s11151-006-0017-5
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Publisher Info
Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 28 (2006)
Issue (Month): 3 (05)
Pages: 307-326
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Handle: RePEc:kap:revind:v:28:y:2006:i:3:p:307-326

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Web page: http://www.springerlink.com/link.asp?id=100336

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Related research
Keywords: Bypass consumer direct access displacement ratio Ramsey prices worksharing JEL classification L51 L97

Cited by:
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  1. Francis Bloch & Axel Gautier, 2006. "Access Pricing and Entry in the Postal Sector," CREPP Working Papers 0606, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège. [Downloadable!]
    Other versions:
  2. CREMER, Helmuth & DE DONDER, Philippe & DUDLEY, Paul & RODRIGUEZ, Frank, 2006. "Price Controls in the Postal Sector: A Welfare Analysis of Alternative Control Structures," IDEI Working Papers 407, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
    Other versions:
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This page was last updated on 2008-8-19.


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