Access charges under two-tier pricing |
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Authors: | Joan Calzada |
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Affiliation: | (1) Departament de Política Econòmica, Universitat de Barcelona and GPRE-IREA, Av. Diagonal, 690, 08034 Barcelona, Spain |
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Abstract: | This article analyzes the regulation of access charges in a liberalized postal market where operators use two-tier pricing. It develops a model of vertical product differentiation that allows determination of the demand for First and Second Class mail from an incumbent postal operator and a group of entrants. The optimal access charges for First and Second Class letters are determined as well as the optimal quality for these services. |
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Keywords: | Postal market Two-tier pricing Access pricing Quality |
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