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Access pricing, bypass and universal service in post

Armstrong, Mark (2006): Access pricing, bypass and universal service in post. Unpublished.

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Abstract

An incumbent postal service provider faces two issues which make the design of efficient access pricing especially difficult. First, universal service obligations, together with the presence of significant fixed costs, require retail prices to be out of line with underlying marginal costs. Second, competing firms may be able to bypass the incumbent's delivery network. Within a simple framework, this note analyses how access charges should best be set in the light of these twin constraints.

Item Type:MPRA Paper
Language:English
Keywords:Access pricing; post; regulation; liberalisation
Subjects:L - Industrial Organization > L8 - Industry Studies: Services > L87 - Postal and Delivery Services
L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation
ID Code:62
Deposited By:Mark Armstrong
Deposited On:03. Oct 2006
Last Modified:25. Jul 2011 16:21

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