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Postal Service: Market Characteristics And Possibilities Of Liberalization

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Abstract

Postal Services play a fundamental role in each nation, because of the double impact they generate from a social and economic point of view. The introduction of the European directives opens the way towards a larger importance of free competition. But, even if liberalisation of postal markets has just occurred with good results in some countries, it doesn’t exist a unique solutions applicable everywhere. Costs of postal sector are strictly connected with delivered volumes, so liberalisation can change into a great failure in those markets characterised by a small postal volume. The aim of this research is to underline the importance of inquiring into the real existence of natural monopoly structure into the postal sector and to reconsider the definition of universal service obligation. Liberalisation has to be followed by a reduction of the cost supported by the incumbent, especially in a low volume per capita market

Suggested Citation

  • Daniela Boetti, 2003. "Postal Service: Market Characteristics And Possibilities Of Liberalization," CERIS Working Paper 200306, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
  • Handle: RePEc:csc:cerisp:200306
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    1. Alessandro Sembenelli & Laura Rondi & Fabio Schiantarelli & Brian Sack, 1993. "Firms' Financial And Real Responses To Business Cycle Shocks And Monetary Tightening: Evidence For Large And Small Italian Companies," CERIS Working Paper 199305, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
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    More about this item

    Keywords

    natural monopoly; cream skimming; costs reduction; USO;

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General

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