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Access Pricing in the Postal Sector: Theory and Simulations

Author

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  • Philippe Donder

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Abstract

This paper studies a theoretical model aimed at assessing the optimal access charges and retail prices in the postal sector. It takes explicitly into account three main characteristics of the postal sector: the ability of entrants to bypass the incumbent’s delivery network; the imposition on the incumbent, but not on entrants of universal service obligations; and the provision of access to both competitors and customers. The paper first develops analytical formulations of the optimal access charges and the incumbent’s end-to-end retail price. It then presents calibrated results illustrating the impact on prices and welfare of various scenarios. Copyright Springer 2006

Suggested Citation

  • Philippe Donder, 2006. "Access Pricing in the Postal Sector: Theory and Simulations," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(3), pages 307-326, May.
  • Handle: RePEc:kap:revind:v:28:y:2006:i:3:p:307-326
    DOI: 10.1007/s11151-006-0017-5
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    File URL: http://hdl.handle.net/10.1007/s11151-006-0017-5
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    References listed on IDEAS

    as
    1. Joan Calzada, 2006. "Worksharing and Access Discounts in the Postal Sector with Asymmetric Information," Journal of Regulatory Economics, Springer, vol. 29(1), pages 69-102, January.
    2. Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany.
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    Cited by:

    1. Sandra Jódar-Rosell & Jordi Gual, 2010. "The Strange Couple: Regulation and Competition Policy in Network Industries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(3), pages 19-23, October.
    2. Martin Maegli & Christian Jaag & Matthias Finger, 2009. "Coûts de la régulation des industries de réseaux : enseignements du réseau postal," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 47-68.
    3. De Donder Philippe & Cremer Helmuth & Dudley Paul & Rodriguez Frank, 2011. "Welfare and Pricing of Mail in a Communications Market," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-24, September.
    4. Bloch Francis & Gautier Axel, 2008. "Access Pricing and Entry in the Postal Sector," Review of Network Economics, De Gruyter, vol. 7(2), pages 1-24, June.
    5. Claire Borsenberger & Helmuth Cremer & Philippe De Donder & Denis Joram & Bernard Roy, 2010. "Funding the cost of universal service in a liberalized postal sector," Chapters,in: Heightening Competition in the Postal and Delivery Sector, chapter 14 Edward Elgar Publishing.
    6. Gautier Axel & Paolini Dimitri, 2011. "Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-30, September.
    7. Valentiny, Pál & Kiss, Károly Miklós, 2009. "A nélkülözhetetlen eszközök értelmezése és a postai szolgáltatások
      [The interpretation of essential facilities and the postal services]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1001-1024.
    8. repec:ces:ifodic:v:8:y:2010:i:3:p:14566923 is not listed on IDEAS
    9. Jaag Christian, 2011. "What is an Unfair Burden? Compensating the Net Cost of Universal Service Provision," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-32, September.
    10. Gautier Axel & Poudou Jean-Christophe, 2014. "Reforming the Postal Universal Service," Review of Network Economics, De Gruyter, vol. 13(4), pages 453-477, December.

    More about this item

    Keywords

    Bypass; consumer direct access; displacement ratio; Ramsey prices; worksharing; JEL classification; L51; L97;

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General

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