Price Controls in the Postal Sector: A Welfare Analysis of Alternative Control Structures
Philippe De Donder,
Helmuth Cremer,
Dudley Paul and
Rodriguez Frank
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Dudley Paul: Royal Mail Group
Rodriguez Frank: Royal Mail Group
Review of Network Economics, 2008, vol. 7, issue 2, 25
Abstract:
Postal regulators set price controls in order to simultaneously ensure the provision of the universal service, promote competition and equity. We study the associated price control procedures in a model where the universal service provider offers both a single piece product and a business mail product and where entrants offer a bulk mail product. Our results from the numerical calibration of our model indicate that in the case where entry is confined only to access, a range of procedures appear capable of meeting these objectives. However, if bypass is available these trade offs become more costly.
Date: 2008
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Working Paper: Price Controls in the Postal Sector: A Welfare Analysis of Alternative Control Structures (2006) 
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DOI: 10.2202/1446-9022.1148
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