Access Pricing and Entry in the Postal Sector
In a fully liberalized postal market, two business models will be possible for a new postal operator: (1) access: where the firm performs the upstream operations and uses the incumbents network for final delivery and (2) bypass where the competing firm controls the entire supply chain and delivers mails with its own network. The choice between access and bypass depends on the entrant's delivery cost relative to the access price. In this paper, we derive welfare maximizing prices for the incumbent operator and we show how these prices should be re-balanced when the entry method is considered as endogenous.
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Volume (Year): 7 (2008)
Issue (Month): 2 (June)
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94-31, Massachusetts Institute of Technology (MIT), Department of Economics.
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Wiley Blackwell, vol. 44(2), pages 131-50, June.
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DTE 384, CIDE, División de Economía.
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- Kanishka Dam & Axel Gautier & Manipushpak Mitra, 2008. "Efficient Access Pricing and Endogenous Market Structure," CREPP Working Papers 0802, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
- Philippe Donder, 2006. "Access Pricing in the Postal Sector: Theory and Simulations," Review of Industrial Organization, Springer, vol. 28(3), pages 307-326, 05.
- De Donder, Philippe, 2006. "Access Pricing in the Postal Sector," IDEI Working Papers 319, Institut d'Économie Industrielle (IDEI), Toulouse.
- Mark Armstrong, 2001. "Access Pricing, Bypass, and Universal Service," American Economic Review, American Economic Association, vol. 91(2), pages 297-301, May.
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