Optimal pricing of postal services under endogenously determined entry
Postal reform (liberalization) is occurring rapidly around the world, perhaps most notably in the EU where January 1, 2011 was the date of Full Market Opening (FMO). As a strategy for maintaining the Universal Service Obligation (USO) under FMO, several authors suggest that the sale of access to competitive entrants may provide the universal service provider with significant opportunities to enhance revenues. In a single postal product context, Crew and Kleindorfer (2011) provide conditions under which competitive entry via access is welfare superior to entry via bypass (the Theorem on the Superiority of Access). In this paper, we show that in the single product context, the Laspeyres price cap-based regulatory adjustment process of Vogelsang and Finsinger (1979) may be adapted to determine optimal access-inducing prices, thereby fulfilling the USO efficiently. We also discuss a number of potential problems associated with extending the Theorem on the Superiority of Access and the Vogelsang-Finsinger price capping procedure to a multiproduct context.
Volume (Year): 32 (2012)
Issue (Month): 4 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- BLOCH, Francis & GAUTIER, Axel, 2006.
"Access pricing and entry in the postal sector,"
CORE Discussion Papers
2006065, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Francis Bloch & Axel Gautier, 2006. "Access Pricing and Entry in the Postal Sector," Working Papers halshs-00411358, HAL.
- 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.
- repec:hal:journl:hal-00361691 is not listed on IDEAS
- Brennan, Timothy J, 1989. "Regulating by Capping Prices," Journal of Regulatory Economics, Springer, vol. 1(2), pages 133-47, June.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-12-00045. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.