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Subsidios cruzados: el caso del sector postal

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  • Luis Fernando Gamboa Nino
  • Leslie Bravo Chew

Abstract

The document seeks to evaluate the existence of cross subsidization between the regulated and competitive parts of the postal sector. We analyze the incentive to make cross subsidization when prices are regulated by Ramsey Pricing or by Global Price Cap. By means of a linear demand function, we found cross subsidies constrain and distort the liberalization of the sector and it is important to avoid them for the competition.

Suggested Citation

  • Luis Fernando Gamboa Nino & Leslie Bravo Chew, 2005. "Subsidios cruzados: el caso del sector postal," Borradores de Investigación 3530, Universidad del Rosario.
    • Handle: RePEc:col:000091:003530
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    File URL: http://revistas.uexternado.edu.co/index.php/ecoins/article/view/53
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    References listed on IDEAS

    as
    1. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509, December.
    2. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    3. Billette de Villemeur, Etienne & Cremer, Helmuth & Roy, Bernard & Toledano, Joëlle, 2003. "Optimal Pricing and Price-Cap Regulation in the Postal Sector," Journal of Regulatory Economics, Springer, vol. 24(1), pages 49-62, July.
    4. Cremer, Helmuth & Grimaud, André & Florens, Jean-Pierre & Marcy, Sarah & Roy, Bernard & Toledano, Joëlle, 2001. "Entry and Competition in the Postal Market: Foundations for the Construction of Entry Scenarios," Journal of Regulatory Economics, Springer, vol. 19(2), pages 107-121, March.
    5. Faulhaber, Gerald R, 1975. "Cross-Subsidization: Pricing in Public Enterprises," American Economic Review, American Economic Association, vol. 65(5), pages 966-977, December.
    6. Tirole, Jean, 1986. "Procurement and Renegotiation," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 235-259, April.
    7. Cazals, Catherine & Fève, Frédérique & Florens, Jean-Pierre & Roy, Bernard, 2004. "Delivery Costs II: Back to Parametric Models," IDEI Working Papers 286, Institut d'Économie Industrielle (IDEI), Toulouse.
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    More about this item

    Keywords

    Postal Sector;

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly

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