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Subsidios cruzados: el caso del sector postal

Author

Listed:
  • Leslie Bravo Chew

    () (Universidad Carlos III de Madrid)

  • Luis Fernando Gamboa

    () (Universidad del Rosario)

Abstract

This document offers a theoretical price regulation model for the postal sector to evaluate the existence of cross subsidies between the regulated and competitive parts of the postal sector. It analyzes agents’ incentives to use cross subsidization when prices are regulated by the Ramsey prices or by the global price cap. It shows that cross subsidies constrain and distort the liberalization of the sector and it is important to avoid them in favor of competition.

Suggested Citation

  • Leslie Bravo Chew & Luis Fernando Gamboa, 2006. "Subsidios cruzados: el caso del sector postal," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 8(15), pages 251-268, July-Dece.
  • Handle: RePEc:rei:ecoins:v:8:y:2006:i:15:p:251-268
    as

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    File URL: http://www.uexternado.edu.co/facecono/ecoinstitucional/workingpapers/lbravo15.pdf
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    References listed on IDEAS

    as
    1. Billette de Villemeur, Etienne & Cremer, Helmuth & Roy, Bernard & Toledano, Joëlle, 2003. "Optimal Pricing and Price-Cap Regulation in the Postal Sector," Journal of Regulatory Economics, Springer, vol. 24(1), pages 49-62, July.
    2. Cremer, Helmuth & Grimaud, André & Florens, Jean-Pierre & Marcy, Sarah & Roy, Bernard & Toledano, Joëlle, 2001. "Entry and Competition in the Postal Market: Foundations for the Construction of Entry Scenarios," Journal of Regulatory Economics, Springer, vol. 19(2), pages 107-121, March.
    3. Faulhaber, Gerald R, 1975. "Cross-Subsidization: Pricing in Public Enterprises," American Economic Review, American Economic Association, vol. 65(5), pages 966-977, December.
    4. Cazals, Catherine & Fève, Frédérique & Florens, Jean-Pierre & Roy, Bernard, 2004. "Delivery Costs II: Back to Parametric Models," IDEI Working Papers 286, Institut d'Économie Industrielle (IDEI), Toulouse.
    5. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    postal sector; regulation; cross subsidies;

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services

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