IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Market Opening, Downstream Access, and Competition in the Market for Mail

Listed author(s):
  • Christian Jaag


  • Urs Trinkner


Market opening in the postal sector invites competition, but it may also present challenge to financing the universal service obligation (USO) currently in place. USO financing under entry is challenged both by the loss of revenues and scale economies in combination with the affordability constraints on pricing. The incumbent and the entrants would benefit from downstream access as compared to end-to-end competition if the access price is set according to avoided cost. This is due to a better cost allocation between operators. At lower access prices, the incumbent loses margin and therefore incurs losses. Concerning overall welfare implications of downstream access, the simulations reported here yield robustly negative results with bypass. Positive effects can be expected with a worksharing regime and access prices oriented at avoided cost.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Swiss Economics in its series Working Papers with number 0011.

in new window

Date of creation: Aug 2008
Handle: RePEc:chc:wpaper:0011
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:chc:wpaper:0011. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Jaag)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.