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Entry in Postal Service Markets with Universal Service and Partial Coverage
| Content Provider | Semantic Scholar |
|---|---|
| Author | Beschorner, Patrick Frank Ernst |
| Copyright Year | 2008 |
| Abstract | In the advent of full postal market liberalization in Europe by 2009 we expect that the incumbent operators anticipate entry by competitors who are not required to offer universal service, i.e. coverage of the entire country and uniform pricing. The market for postal service exhibits stronger network effects than in telecommunications because of the lack of interconnection. In the present paper we model entrants which can opt for a partial geographical coverage and who enter with a higher service quality than the incumbent. This aims to predict possible deterrence or accommodating strategies by the incumbent. We show that depended on the shape of the network costs and the network effects the incumbent may either offer a low quality in order to mitigate competition or offer a higher quality in order to restrict the entrant’s geographical coverage. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.uni-graz.at/socialpolitik/papers/Beschorner.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
