By Michael A. Crew, Paul R. Kleindorfer
Competitive Transformation of the Postal and supply Sector is an vital resource of data and research at the present nation of the postal and supply zone. It bargains present insights of top researchers and practitioners into procedure and legislation in addition to the economics of this region. matters addressed contain nationwide and overseas views, monetary viability, the common provider legal responsibility, legislation, festival, access, the function of scale and scope economies, the character and function of rate and insist research in postal provider, productiveness, interplay of legislations and economics, human assets, transition and reform matters. The papers within the e-book have been chosen from the papers awarded on the 11th convention on Postal and supply Economics, Toledo, Spain, June 4-7, 2003.
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Additional info for Competitive Transformation of the Postal and Delivery Sector
II Supporters might argue that it will squeeze the PO's costs and make it more efficient. This may be true, but it will also force the PO's profits in the low-cost areas toward zero potentially eliminating the profits from low-cost areas needed to support the high-cost areas as mandated for the USO. Thus, it may find itself delivering only where competitors do not wish to serve and may lose money on its formerly low-cost routes, which are made uneconomic because of loss of density and scale economies.
The sum of consumer surplus and profits w= U(X)-PxX +aNv(y;,y~)+(l-a)Nv(y;,y;) -aNp;y; -aNp;y; -(l-a)Np;y; -(1-a)Np;y; +Jr E (4) + n' . Observe that decision variables are prices, so that all the quantities in (4) are given by the corresponding demand functions . So far we have not specified how the prices of the entrant will be determined. It is clear that they will somehow depend on the incumbent's prices and particularly on the access charge. However, the specific relationship will depend on the entry scenario which is considered.
J 300 350 400 450 500 550 600 CDIH 13 This contrasts with the results for uniform pricing for sector M where (as shown in Crew and Kleindorfer (2002» the Ramsey-optimal DAP prices typically exceed the avoided cost/ECPR price Pz - CUI + Ca' This is especially important for high fixed costs and large differences between low-cost and high-cost delivery. g 400 a.. 300 200 .. ...... ......... .... .... .. ........... ..... .. ... g 400 a.. --- i -j 600 CDIH We now consider the joint impact of DAP pricing across letters and parcels .
Competitive Transformation of the Postal and Delivery Sector by Michael A. Crew, Paul R. Kleindorfer