Emerging Competition in Postal and Delivery Services by James I. Campbell Jr. (auth.), Michael A. Crew, Paul R.

By James I. Campbell Jr. (auth.), Michael A. Crew, Paul R. Kleindorfer (eds.)

Emerging festival in Postal and supply Services brings jointly practitioners, postal directors, the courier undefined, regulators, educational economists and legal professionals to ascertain very important coverage and regulatory concerns dealing with the postal and supply industries. This quantity stories such subject matters as expense and productiveness research, common carrier and access, call for research and the constitution of postal money procedure, expense law and competition.

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The predicament of a postal administration is that once it allows downstream access then it cannot discriminate between those people requesting such access and that, being a dominant supplier of letter delivery services, the basis of whatever access conditions it seeks to impose can be challenged. On the other hand, if a postal administration refuses to permit any downstream access on the basis that such access would invariably result in an infringement of the reserved area (the assumption being that collection, sortation, and transport remain within the monopoly) then whether or not it is necessary to maintain such an extensive reserved area would be open to challenge under Article 90(2) and Article 86.

Where a postal service provider has a market share of, say, 80%-90%, a high mark-up might be required. Where the incumbent's market share was, say, below 20%, a lower mark-up might be acceptable. At low levels of market share, there might only be concern that the average incremental cost is covered. If such were the approach chosen, there would clearly be a need to have a good understanding of the definition of the relevant market-this would require the collection of a great deal of market data.

Finally, political and, particularly, union pressure made privatization inconceivable. As a result, Swiss Post remains a public enterprise, and the law governing its activities is a postal law, which only applies to Swiss Post, as opposed to a postal market law, which would regulate all See Rey and Finger (1994). THE SWISS POSTAL LAW OF 1998 33 competitors in the postal market. Given this general attitude in favor of a public enterprise, the question of liberalizing the postal market in Switzerland changed somewhat: how to protect Swiss Post, the historically dominant operator with its approximately 50,000 employees from too much competition, while at the same time opening up the market for competition?

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