Postal Service: Market Characteristics And Possibilities Of Liberalization
AbstractPostal Services play a fundamental role in each nation, because of the double impact they generate from a social and economic point of view. The introduction of the European directives opens the way towards a larger importance of free competition. But, even if liberalisation of postal markets has just occurred with good results in some countries, it doesn’t exist a unique solutions applicable everywhere. Costs of postal sector are strictly connected with delivered volumes, so liberalisation can change into a great failure in those markets characterised by a small postal volume. The aim of this research is to underline the importance of inquiring into the real existence of natural monopoly structure into the postal sector and to reconsider the definition of universal service obligation. Liberalisation has to be followed by a reduction of the cost supported by the incumbent, especially in a low volume per capita market
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Bibliographic InfoPaper provided by Institute for Economic Research on Firms and Growth - Moncalieri (TO) in its series CERIS Working Paper with number 200306.
Length: 22 pages
Date of creation: Jun 2003
Date of revision:
natural monopoly; cream skimming; costs reduction; USO;
Find related papers by JEL classification:
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
- L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
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