Assessing Diversification in the Postal Sector

Timothy Brennan

A chapter in The Economics of the Postal and Delivery Sector, 2022, pp 95-109 from Springer

Abstract: Abstract A widespread business strategy for national postal operators (NPOs) around the world is diversification into competitive sectors other than postal delivery. One concern with diversification is excessive transfer pricing, that is, overcharging itself for an input. A second is non-price discrimination against rivals in access to its regulated service (Crew et al., 2005). A third concern, cross-subsidization, involves charging cost associated with the production of an unregulated service and charging it to the ratepayers of the regulated service (Brennan, 1990). We assess whether these concerns apply to the postal sector and if there are countervailing benefits.

Date: 2022
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DOI: 10.1007/978-3-030-82692-5_7

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