 COST IMPACT OF NEW SERVICE PROVIDERS THROUGH ALTERNATIVE INPUT POLICY AND HETEROGENOUS SERVICE USERSZoran Miletic () Economic Thought and Practice, 2013, vol. 22, issue 2, 469-498 Abstract: This paper analyzes the problems of regulation in the postal sector. The shown calculations set forth several options that would be offered through the regulation of new applicants (postal service providers) in the liberalized market. Proper regulation, i.e. pricing for access to a reserved area of new providers of the universal postal service, is essential for normal functioning of the postal market. If the monopoly overprotects the current provider of the universal postal service, then the competition will not properly develop, nor will the convergence to the optimal price and quality of service provided. On the other hand, in case of insufficient regulatory regime, there will be intense competitive activity only in certain parts of the postal market, while other areas (rural areas) will be left to the current provider of the universal postal service that will provide the same service in unattractive areas and will probably generate losses or bear an unfair burden of defective regulation. Keywords: postal sector regulation; national postal operator; economy; new providers (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:avo:emipdu:v:22:y:2013:i:2:p:469-498 Ordering information: This journal article can be ordered from Access Statistics for this article Economic Thought and Practice is currently edited by Nebojsa Stojcic More articles in Economic Thought and Practice from Department of Economics and Business, University of Dubrovnik Contact information at EDIRC. |
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