Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All
|Title||Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All|
|Publication Type||Journal Article|
|Year of Publication||2011|
|Authors||Gautier, A, Paolini, D|
|Journal||Review of Network Economics|
In the postal sector, the financial burden of the universal service depends on its content, the postal market characteristics and the countrys 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.
|Keywords||compensation fund, cream-skimming, market liberalization, universal service obligations|