POSTAL SERVICE: MARKET CHARACTERISTICS AND POSSIBILITIES OF LIBERALIZATION

Daniela Boetti ()
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Daniela Boetti: Ceris - Institute for Economic Research on Firms and Growth,Turin, Italy

CERIS Working Paper from CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY

Abstract: Postal Services play a fundamental role in each nation, because of the double impact they generate from a social and economic point of view. The introduction of the European directives opens the way towards a larger importance of free competition. But, even if liberalisation of postal markets has just occurred with good results in some countries, it doesn’t exist a unique solutions applicable everywhere. Costs of postal sector are strictly connected with delivered volumes, so liberalisation can change into a great failure in those markets characterised by a small postal volume. The aim of this research is to underline the importance of inquiring into the real existence of natural monopoly structure into the postal sector and to reconsider the definition of universal service obligation. Liberalisation has to be followed by a reduction of the cost supported by the incumbent, especially in a low volume per capita market

Keywords: natural monopoly; cream skimming; costs reduction; USO (search for similar items in EconPapers)
JEL-codes: L12 L33 L97 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2003-06
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