Entry deterrence in postal service markets

Beschorner, Patrick

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URL: https://ub-madoc.bib.uni-mannheim.de/1857
URN: urn:nbn:de:bsz:180-madoc-18570
Document Type: Working paper
Year of publication: 2007
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L51 L41 L12 ,
Subject headings (SWD): Postzustellung , Deregulierung , Dienstleistungsangebot , Marktzugang , Deutschland
Individual keywords (German): Postbeförderung , Deregulierung , Dienstleistungsqualität , Markteintritt , Deutschland
Keywords (English): regulation , liberalization , postal services
Abstract: In this paper we analyze the incentive of the German postal service (Deutsche Post AG, DPAG) to increase quality in the light of the upcoming liberalization of the postal services market. Currently, there would be no incentive for DPAG to increase its quality if the market were not to be liberalized in six months. Therefore, we suggest that the current changes in market regulation have motivated this quality improvement. In particular we show that this rise in quality is only profitable to DPAG because it renders entry less profitable or even impossible. However, consumers benefit from higher quality, whether entry is deterred or accommodated.
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