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An Economic Perspective on Terminal Dues

In: The Changing Postal and Delivery Sector

Author

Listed:
  • Henrik Ballebye Okholm

    (Copenhagen Economics)

  • Bruno Basalisco

    (Copenhagen Economics)

  • Jimmy Gårdebrink

    (Copenhagen Economics)

  • Anna Möller Boivie

    (Copenhagen Economics)

Abstract

The purpose of the UPU terminal dues system is to compensate the designated operator in the destination country for the cost associated with the handling, transport and delivery of cross-border letter post items. However, the amount of compensation for each bilateral mail flow is not a direct translation of the costs, nor the price of equivalent domestic services. This results in several market distortions in the international mail market and financial transfers between designated operators. This paper investigates the impact of a proposed update of the terminal dues rates on the financial transfers between postal operators.

Suggested Citation

  • Henrik Ballebye Okholm & Bruno Basalisco & Jimmy Gårdebrink & Anna Möller Boivie, 2017. "An Economic Perspective on Terminal Dues," Topics in Regulatory Economics and Policy, in: Michael Crew & Pier Luigi Parcu & Timothy Brennan (ed.), The Changing Postal and Delivery Sector, pages 79-96, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-46046-8_6
    DOI: 10.1007/978-3-319-46046-8_6
    as

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