Access Pricing in the Postal Sector: Theory and Simulations

Philippe De Donder

Review of Industrial Organization, 2006, vol. 28, issue 3, 307-326

Abstract: This paper studies a theoretical model aimed at assessing the optimal access charges and retail prices in the postal sector. It takes explicitly into account three main characteristics of the postal sector: the ability of entrants to bypass the incumbent’s delivery network; the imposition on the incumbent, but not on entrants of universal service obligations; and the provision of access to both competitors and customers. The paper first develops analytical formulations of the optimal access charges and the incumbent’s end-to-end retail price. It then presents calibrated results illustrating the impact on prices and welfare of various scenarios. Copyright Springer 2006

Keywords: Bypass; consumer direct access; displacement ratio; Ramsey prices; worksharing; JEL classification; L51; L97 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:revind:v:28:y:2006:i:3:p:307-326

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DOI: 10.1007/s11151-006-0017-5

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