Scale Economies and Postal Price Caps in Europe: Declining Volumes, Lower Productivity, Higher Postage?

Antonia Niederprüm (), Christian Bender and Alex Kalevi Dieke
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Antonia Niederprüm: WIK
Alex Kalevi Dieke: WIK

A chapter in The Future of the Postal Sector in a Digital World, 2016, pp 19-28 from Springer

Abstract: Abstract In many countries, postal regulators have implemented price cap regimes to provide incentives for postal operators to improve efficiency and to allow more pricing flexibility. In the price cap formula (RPI − X), the X-factor reflects expected productivity gains that usually reduce the scope of potential price increases such that average prices increase less than inflation. In a world with growing mail volume, efficiency gains were driven by economies of scale and scope and innovations in postal operations.

Keywords: Average Cost; Efficiency Gain; Letter Post; German Regulator; Price Flexibility (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:spr:topchp:978-3-319-24454-9_2

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DOI: 10.1007/978-3-319-24454-9_2

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