EconPapers    
Economics at your fingertips  
 

Access Pricing and Entry in the Postal Sector

Francis Bloch () and Axel Gautier ()

CREPP Working Papers from Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège

Abstract: Postal markets have been open to competition for a long time. But, with a few exceptions, the competitors of the incumbent postal operator are active on the upstream segments of the market -preparation, collection, outward sorting and transport of mail products. With the further steps planned in the liberalization process, there are new opportunities to extend competition to the downstream segments of the market -the delivery of mails. In the future, two business models will be possible for the new postal operators: (1) access: where the firm performs the upstream operations and uses the incumbent’s delivery network and (2) bypass where the competing firm controls the entire supply chain and delivers mails with its own delivery network. These two options have different impacts on welfare and the profit of the incumbent operator. The choice between access and bypass depends on the entrant's delivery cost relative to the cost of buying access to the incumbent operator (the access price). In this paper, we derive optimal -welfare maximizing- stamp and access prices for the incumbent operator when these prices have an impact on the delivery method chosen by the entrant. We show how prices should be re-balanced when the entry method is considered as endogenous i.e. affected by the incumbent's prices.

Date: 2006
New Economics Papers: this item is included in nep-com and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www2.ulg.ac.be/crepp/papers/crepp-wp200606.pdf (application/pdf)

Related works:
Working Paper: Access pricing and entry in the postal sector (2009) Downloads
Journal Article: Access Pricing and Entry in the Postal Sector (2008) Downloads
Working Paper: Acces pricing and entry in the postal sector (2008)
Working Paper: Access pricing and entry in the postal sector (2006) Downloads
Working Paper: Access Pricing and Entry in the Postal Sector (2006) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rpp:wpaper:0606

Access Statistics for this paper

More papers in CREPP Working Papers from Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège Contact information at EDIRC.
Bibliographic data for series maintained by Mathieu Lefebvre ().

 
Page updated 2021-07-17
Handle: RePEc:rpp:wpaper:0606