Abstract
In this paper we examine the reasons why entry in the postal sector may be limited under liberalization. Research in the area of entry following liberalization of the postal markets, has focussed primarily on the idea of cream-skimming (see for example Rodriguez et al 1999, Kolin and Smith 1999). This literature has cautioned against a policy of hasty reduction of the reserve area, as new entrants would be able to take away the profitable routes from the incumbent, who under a universal service and uniform tariff obligation would face either a deteriorating financial position, or would have to raise its average uniform tariff. The literature has examined more recently the possible funding options for the USO under full liberalization, reaching similar conclusions (De Donder et al 2001).
We would like to thank Simon Gaysford, Tommaso Valletti, and the editors for their comments on this and earlier drafts.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Reference
Andersson, Peter. 2001. “Deregulation and Internet: new challenges to postal services in Sweden.” Linköping University
Bradley, Michael A., and Jeff Colvin. 1995. “An Econometric Model of Postal Delivery.” In Commercialization of Postal and Delivery Services: National and International Perspectives, edited by Michael A. Crew and Paul R. Kleindorfer. Boston, MA: Kluwer Academic Publishers.
Carter, Michael and Julian Wright. 1999. “Interconnection in Network Industries,” Review of Industrial Organization, 14–1: 1–25.
Cremer, Helmuth, André Grimaud, Jean-Pierre Florens, Sarah Marcy, Bernard Roy, and Joëlle Toledano. 2001. “Entry and Competition in the Postal Market: Foundations for the Construction of Entry Scenarios.” Journal of Regulatory Economics 19 (no. 2, March): 107–121.
Crew, Michael A., and Paul R. Kleindorfer. 2001. “Whither the USO under Competitive Entry: A Microstructure Approach.” In Future Directions in Postal Reform, edited by Michael A. Crew and Paul R. Kleindorfer. Boston, MA: Kluwer Academic Publishers.
Cohen, Robert H., William W. Ferguson, John D. Waller, and Spyros S. Xenakis. 1999. “An Analysis of the Potential for Cream Skimming in the United States Residential Delivery Market.” In Emerging Competition in Postal and Delivery Services, edited by Michael A. Crew and Paul R. Kleindorfer. Boston, MA: Kluwer Academic Publishers.
Cohen, Robert H., William W. Ferguson, John D. Waller, and Spyros S. Xenakis. 2000. “Universal Service without a Monopoly.” In Current Directions in Postal Reform, edited by Michael A. Crew and Paul R. Kleindorfer. Boston, MA: Kluwer Academic Publishers.
De Donder, Philippe, Helmuth Cremer, Jean-Pierre Florens, André Grimaud and Frank Rodriguez. 2001. “Uniform Pricing and Postal Market Liberalization.” In Future Directions in Postal Reform, edited by M. A. Crew and Paul R. Kleindorfer. Boston, MA: Kluwer Academic Publishers.
Geeraerts, Jos. 2001. “Market strategies for new entrants” In Promoting Effective Competition in UK Postal Services, Proceedings 29, Centre For the Study of Regulated Industries (CRI).
Kane, Alan R., David E. Treworgy, Edward L. Gamache, and Ellen Y. Wong. 2001. “Assessment and Responses of Postal Sector Operators to Electronic Diversions.” In Postal and Delivery Services: Pricing, Productivity, Regulation and Strategy, edited by Michael A. Crew and Paul R. Kleindorfer. Boston, MA: Kluwer Academic Publishers.
Kay, John. 1995. “Why Firms Succeed.” Oxford University Press.
Klemperer, Paul, and A. Jorge Padilla. 1997. “Do Firm’s Product Lines Include too Many Varieties?” RAND Journal of Economics 28 (No. 3, Autumn): 472–488.
Klemperer, Paul. 1995. “Competition When Consumers have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade.” Review of Economic Studies 62: 515–539.
Klemperer, Paul. 1997. “Entry Deterrence in Markets with Consumer Switching Costs.” The Economic Journal 97: 99–117.
Laffont, Jean-Jacques, Patrick Rey and Jean Tiróle. 1998. “Network Competition: Overview and Non-Discriminatory Pricing” and “Network Competition: Price Discrimination.” RAND Journal of Economics 29 (No. 1, Spring,): 1–56.
Lommerud, Kjell Erik, Sergard, Lars. 2002. “Entry in Telecommunication: Customer Loyalty, Price Sensititivity and Access Prices.” CEPR, Discussion Paper Series No. 3502.
Lundgren, Anna. 2001. “Sustainability of USO in a Liberalized Postal Market.” In Postal and Delivery Services: Pricing, Productivity, Regulation and Strategy, edited by Michael A. Crew and Paul R. Kleindorfer. Boston, MA: Kluwer Academic Publishers.
National Audit Office. 2002. “Opening the Post — Postcomm and Postal Services — the Risks and Opportunities.”
OFTEL. 2000. “Review of Universal Telecommunications Services.”
Raju, Jagmohan S., V. Srinivasan, and Rajiv Lai. 1990. “The Effects of Brand Loyalty on Competitive Price Promotional Strategies.” Management Science 36 (3): 276–304.
Schmalensee, Richard. 1982. “Product Differentiation Advantages of Pioneering Brands.” American Economic Review 72 (3): 349–365.
Sibbick, David. 2001. “Focusing on Value-Added Services.” In Promoting Effective Competition in UK Postal Services, Proceedings 29, Centre For the Study of Regulated Industries (CRI).
Valletti, Tommaso M., Stephen Hoernig, and Pedro P. Barros. 2002. “Universal Service and Entry: The Role of Uniform Pricing and Coverage Constraints.” Journal of Regulatory Economics 21 (No. 2, March): 169–190.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2002 Springer Science+Business Media New York
About this chapter
Cite this chapter
Burns, P., Carslake, I., Houpis, G. (2002). Brand Loyalty and Limited Entry in Postal Markets. In: Crew, M.A., Kleindorfer, P.R. (eds) Postal and Delivery Services. Topics in Regulatory Economics and Policy Series, vol 44. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0233-3_4
Download citation
DOI: https://doi.org/10.1007/978-1-4615-0233-3_4
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-4978-5
Online ISBN: 978-1-4615-0233-3
eBook Packages: Springer Book Archive