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Assessing Diversification in the Postal Sector

In: The Economics of the Postal and Delivery Sector

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  • Timothy J. Brennan

    (University of Maryland-Baltimore County)

Abstract

A widespread business strategy for national postal operators (NPOs) around the world is diversification into competitive sectors other than postal delivery. One concern with diversification is excessive transfer pricing, that is, overcharging itself for an input. A second is non-price discrimination against rivals in access to its regulated service (Crew et al., 2005). A third concern, cross-subsidization, involves charging cost associated with the production of an unregulated service and charging it to the ratepayers of the regulated service (Brennan, 1990). We assess whether these concerns apply to the postal sector and if there are countervailing benefits.

Suggested Citation

  • Timothy J. Brennan, 2022. "Assessing Diversification in the Postal Sector," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), The Economics of the Postal and Delivery Sector, pages 95-109, Springer.
    • Handle: RePEc:spr:topchp:978-3-030-82692-5_7
    DOI: 10.1007/978-3-030-82692-5_7
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