Managing Change in the Postal and Delivery Industries by Michael D. Bradley, Jeff Colvin, John C. Panzar (auth.),

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By Michael D. Bradley, Jeff Colvin, John C. Panzar (auth.), Michael A. Crew, Paul R. Kleindorfer (eds.)

Managing switch within the Postal and supply Industries brings jointly practitioners, postal directors, the explicit undefined, regulators, economists and legal professionals to ascertain the $64000 coverage and regulatory matters dealing with the postal and supply industries. This quantity studies such themes as overseas postal coverage, the common provider legal responsibility, rules and festival, access and the position of scale and scope economics, expense research in postal providers, and repair criteria. This publication presents a different standpoint at the difficulties dealing with postal and supply networks.

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Extra resources for Managing Change in the Postal and Delivery Industries

Sample text

It is probably the major building block of the concept of "public service" which is central to regulatory policies in France and in other European countries. The literature on the postal sector has only recently become interested in this topic. 2 Various interesting studies have emerged which attempt to study the cost of the USO. 3 Most of the authors aim at providing a measure of the burden imposed by the usa on public operators in a (partially) liberalized postal sector. In a recent paper, Dobbs and Golay (1996) adopt a somewhat different perspective and attempt to evaluate the welfare cost of the USO.

This value represents the efficiency cost (relative to a first-best outcome) of uniform pricing; it is essentially equivalent to the measure suggested by Dobbs and Golay (1996) in one of their scenarios. 4, we obtain: aW = (1 + y)aUr + auu + (1 + y)a1tm = 1004, that is about 1 billion FF. This figure points towards a strong positive welfare impact of universal service. Put differently, when the second-best nature of the problem is accounted for, effecting redistribution through prices and thus through cross-subsidies within the postal sector appears to dominate the alternative policy of direct transfers, financed through the general budget.

The use of prices as redistributive instruments clearly constitutes a second-best policy. In a first-best setting, such a policy would necessarily be sub-optimal and dominated by marginal cost pricing combined with a system of lump sum taxes and transfers (covering fixed cost and performing redistribution). However, in a second-best setting, where the government's budget is financed through distortionary taxation, direct transfers also involve efficiency losses. Consequently, distorted prices may constitute an effective instrument of redistributive policy.

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