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Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All
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Axel Gautier
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September 12, 2011
In the postal sector, the financial burden of the universal service depends on its content, the postal market characteristics and the country’s geographical configuration. These three groups of factors affect both the direct cost of providing the service and the extent of competition on the market. In this paper, we consider countries with different geographical characteristics and we show that the choice of an appropriate mechanism to share the burden of universal service between market participants depends on the country configuration. Thus, for universal service financing, one size does not fit all.
Published Online: 2011-9-12
©2012 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Editorial Introduction
- Competition, Pricing and Universal Service in the Postal Sector: An Introduction
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- Postal Service Pricing Incentives Following the Introduction of Price Cap Regulation
- The Effect of Flexible Pricing on Entry into the U.S. Letter Market
- Welfare and Pricing of Mail in a Communications Market
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- Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All
- What is an Unfair Burden? Compensating the Net Cost of Universal Service Provision
- The Universal Postal Service after the Lisbon Treaty: a True Step Forward?
- The Effect of Unobserved Heterogeneity in Stochastic Frontier Estimation: Comparison of Cross Section and Panel with Simulated Data for the Postal Sector
- Letter Traffic Demand in the UK: An Analysis by Product and Envelope Content Type
Keywords for this article
universal service obligations;
compensation fund;
market liberalization;
cream-skimming
Articles in the same Issue
- Editorial Introduction
- Competition, Pricing and Universal Service in the Postal Sector: An Introduction
- Article
- Postal Service Pricing Incentives Following the Introduction of Price Cap Regulation
- The Effect of Flexible Pricing on Entry into the U.S. Letter Market
- Welfare and Pricing of Mail in a Communications Market
- Environmental Cost and Universal Service Obligations in the Postal Sector
- Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All
- What is an Unfair Burden? Compensating the Net Cost of Universal Service Provision
- The Universal Postal Service after the Lisbon Treaty: a True Step Forward?
- The Effect of Unobserved Heterogeneity in Stochastic Frontier Estimation: Comparison of Cross Section and Panel with Simulated Data for the Postal Sector
- Letter Traffic Demand in the UK: An Analysis by Product and Envelope Content Type
