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Termination Charges in the International Parcel Market: Competition and Regulation

Author

Listed:
  • Andreas Haller
  • Christian Jaag
  • Urs Trinkner

Abstract

There is a broad theoretical end empirical economic literature discussing the effects of termination charges on competition and retail prices. Most of this literature has focused on the telecommunications markets. Termination charges in the international parcel market have not yet received much attention in the economic literature. The aim of this paper is to fill this gap and to analyze the economics of termination charges for parcels. We find that the economics of termination charges in the international parcel market are different to termination charges in other mar-kets. Based on these findings the paper presents a number of practical solutions and potential regulatory remedies to the dilemma of termination charges in the international parcel market.

Suggested Citation

  • Andreas Haller & Christian Jaag & Urs Trinkner, 2011. "Termination Charges in the International Parcel Market: Competition and Regulation," Working Papers 0028, Swiss Economics.
  • Handle: RePEc:chc:wpaper:0028
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    File URL: http://www.swiss-economics.ch/RePEc/files/0028HallerJaagTrinkner.pdf
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    References listed on IDEAS

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    1. Armstrong, M., 1996. "Network interconnection," Discussion Paper Series In Economics And Econometrics 9625, Economics Division, School of Social Sciences, University of Southampton.
    2. Stefan Buehler & Armin Schmutzler, 2004. "Intimidating Competitors � Endogenous Vertical Integration and Downstream Investment in Successive Oligopoly," SOI - Working Papers 0409, Socioeconomic Institute - University of Zurich, revised Jul 2005.
    3. Buehler, Stefan & Schmutzler, Armin & Benz, Men-Andri, 2004. "Infrastructure quality in deregulated industries: is there an underinvestment problem?," International Journal of Industrial Organization, Elsevier, vol. 22(2), pages 253-267, February.
    4. Helmut M. Dietl & Urs Trinkner & Reto Bleisch, 2004. "Liberalization and Regulation of the Swiss Letter Market," Working Papers 0001, Swiss Economics, revised Jul 2005.
    5. Gans, Joshua S & Williams, Philip L, 1999. "Access Regulation and the Timing of Infrastructure Investment," The Economic Record, The Economic Society of Australia, vol. 75(229), pages 127-137, June.
    6. Stefan Buehler & Dennis Gärtner & Daniel Halbheer, 2006. "Deregulating Network Industries: Dealing with Price-quality Tradeoffs," Journal of Regulatory Economics, Springer, vol. 30(1), pages 99-115, July.
    7. Urs Trinkner & Christian Jaag & Helmut Dietl & Haller Andreas & Verbeek Erwin & Fürst Oliver, 2011. "International Parcels – Review of Inward Land Rates," Studies and Reports, Swiss Economics, pages 1-72, August.
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    Citations

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    Cited by:

    1. Andreas Haller & Christian Jaag & Urs Trinkner, 2013. "Termination charges in the international parcel market," Chapters,in: Reforming the Postal Sector in the Face of Electronic Competition, chapter 19, pages 277-293 Edward Elgar Publishing.

    More about this item

    Keywords

    International parcel market; Termination charges; Remuneration system;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services

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