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Termination Charges in the International Parcel Market

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  • Andreas Haller
  • Christian Jaag
  • Urs Trinkner

Abstract

This paper explains the potentially excessive termination charges and low quality levels in the international parcel market with a stylized game theoretic model. Within this model it is possible to elaborate the distortions currently in place. The model incorporates quality to account for empirical findings on consumer preferences which indicate that quality of service is a crucial issue in the international parcel market.

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File URL: http://www.swiss-economics.ch/RePEc/files/0033HallerJaagTrinkner.pdf
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Bibliographic Info

Paper provided by Swiss Economics in its series Working Papers with number 0033.

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Date of creation: Jul 2012
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Handle: RePEc:chc:wpaper:0033

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Web page: http://www.swiss-economics.ch
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Keywords: International parcel market; Termination charges; Remuneration system;

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References

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  1. Stefan Buehler & Armin Schmutzler, 2004. "Intimidating Competitors – Endogenous Vertical Integration and Downstream Investment in Successive Oligopoly," SOI - Working Papers 0409, Socioeconomic Institute - University of Zurich, revised Jul 2005.
  2. Stefan Buehler & Dennis Gärtner & Daniel Halbheer, 2006. "Deregulating Network Industries: Dealing with Price-quality Tradeoffs," Journal of Regulatory Economics, Springer, vol. 30(1), pages 99-115, 07.
  3. Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: I. Overview and Nondiscriminatory Pricing," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 1-37, Spring.
  4. Stefan Buehler & Armin Schmutzler & Men-Andri Benz, 2002. "Infrastructure Quality in Deregulated Industries: Is there an Underinvestment Problem?," SOI - Working Papers 0209, Socioeconomic Institute - University of Zurich.
  5. Helmut M. Dietl & Urs Trinkner & Reto Bleisch, 2004. "Liberalization and Regulation of the Swiss Letter Market," Working Papers 0001, Swiss Economics, revised Jul 2005.
  6. Gans, Joshua S & Williams, Philip L, 1999. "Access Regulation and the Timing of Infrastructure Investment," The Economic Record, The Economic Society of Australia, vol. 75(229), pages 127-37, June.
  7. Andreas Haller & Christian Jaag & Urs Trinkner, 2011. "Termination Charges in the International Parcel Market: Competition and Regulation," Working Papers 0028, Swiss Economics.
  8. Christian Jaag & Urs Trinkner, 2007. "Pricing in competitive two-sided mail markets," Working Papers 0007, Swiss Economics, revised Jul 2007.
  9. Urs Trinkner & Christian Jaag & Helmut Dietl & Haller Andreas & Verbeek Erwin & Fürst Oliver, 2011. "International Parcels – Review of Inward Land Rates," Studies and Reports, Swiss Economics, pages 1-72, August.
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