## Abstract Sappington and Sidak develop a model of stateβowned enterprise (SOE) pricing behavior in which firms maximize a weighted average of revenues and profits. The model predicts that SOEs will lower prices in moreβelastic markets and raise them in lessβelastic markets if the weight they plac
Access pricing in competitive postal services
β Scribed by Chris Nicholson
- Publisher
- Elsevier Science
- Year
- 1994
- Tongue
- English
- Weight
- 691 KB
- Volume
- 4
- Category
- Article
- ISSN
- 0957-1787
No coin nor oath required. For personal study only.
β¦ Synopsis
Postal services are the latest network industry to be considered for liberalization and privatization. Given the natural monopoly characteristics of the delivery function, one of the most effective ways of introducing competition will be through downstream access to the network. Pricing of access causes particular problems due to the significant averaging of costs as a result of government's desire to maintain universal delivery at a uniform tariff. This paper considers some of the options for access pricing and draws analogies with the telecommunications sector.
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