Reference : Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All
Scientific journals : Article
Business & economic sciences : Microeconomics
Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All
Gautier, Axel mailto [Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie industrielle >]
Paolini, Dimitri mailto [ > > ]
Review of Network Economics
CRA International P/L
Competition, Pricing and Universal Service in the Postal Sector
Art 6
Yes (verified by ORBi)
[en] Universal service obligations ; compensation fund ; market liberalization ; cream-skimming
[en] 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.

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