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Competition Structure and Future Postal Reform in Japan

In: Progress toward Liberalization of the Postal and Delivery Sector

Author

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  • Shoji Maruyama

    (Japan Post)

Abstract

The possibility that a former monopolistic postal operator could maintain a dominant market position even after market liberalization has been discussed repeatedly at the Conference on Postal and Delivery Economics (CPDE). The logic of this possibility is that private entry may not be sufficiently profitable, as an established postal operator has significant cost advantages derived from economies of scale. Japan’s postal market is an interesting case in point. Japan Post Corporation (hereafter Japan Post), the incumbent universal service provider, faces competition from private parcel and mail delivery businesses. How this market will develop and what regulatory and legal framework will be applied are both topics of intense debate at present in Japan. A key concern is the financial sustainability of the postal business and the continuing stability of Japan Post to provide universal service throughout the country.

Suggested Citation

  • Shoji Maruyama, 2006. "Competition Structure and Future Postal Reform in Japan," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Progress toward Liberalization of the Postal and Delivery Sector, chapter 0, pages 369-384, Springer.
  • Handle: RePEc:spr:topchp:978-0-387-29744-6_22
    DOI: 10.1007/978-0-387-29744-6_22
    as

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