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Brand, Product Differentiation and Postal Market Outcomes

In: New Business and Regulatory Strategies in the Postal Sector

Author

Listed:
  • Isabelle Carslake

    (Frontier Economics)

  • George Houpis

    (Frontier Economics)

  • Ellie Monaghan

    (Frontier Economics)

Abstract

Letters markets were opened to full competition by 2011 in most EU countries. We can thus observe some market outcomes post liberalization: the broad picture suggests that customers have been somewhat sticky. In this paper, we use a differentiated Bertrand economic model—typically used for merger simulation—to assess possible factors that affect the development of competition in post. This model captures the apparent characteristics of different postal products markets based on evidence of current market outcomes and can assist policy makers in evaluating policies and assessing the strength of some determinants of market outcomes, such as product differentiation and possibly relative strength of the brand of the incumbent.

Suggested Citation

  • Isabelle Carslake & George Houpis & Ellie Monaghan, 2018. "Brand, Product Differentiation and Postal Market Outcomes," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), New Business and Regulatory Strategies in the Postal Sector, pages 219-233, Springer.
  • Handle: RePEc:spr:topchp:978-3-030-02937-1_17
    DOI: 10.1007/978-3-030-02937-1_17
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