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Access pricing, bypass and universal service in post

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  • Armstrong, M.

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

Paper provided by University College London in its series Open Access publications from University College London with number http://discovery.ucl.ac.uk/14556/.

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Date of creation: Jun 2008
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Publication status: Published in Review of Network Economics (2008-06) v.7, p.172-187
Handle: RePEc:ner:ucllon:http://discovery.ucl.ac.uk/14556/

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Web page: http://www.ucl.ac.uk

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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.
  2. De Donder, Philippe, 2006. "Access Pricing in the Postal Sector," IDEI Working Papers 319, Institut d'Économie Industrielle (IDEI), Toulouse.
  3. Armstrong, Mark & Doyle, Chris & Vickers, John, 1996. "The Access Pricing Problem: A Synthesis," Journal of Industrial Economics, Wiley Blackwell, vol. 44(2), pages 131-50, June.
  4. Mark Armstrong, 2001. "Access Pricing, Bypass, and Universal Service," American Economic Review, American Economic Association, vol. 91(2), pages 297-301, May.
  5. Peter A. Diamond & J. A. Mirrlees, 1968. "Optimal Taxation and Public Production," Working papers 22, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
  1. 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).
  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.

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