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Licensed Unlicensed Requires Authentication Published by De Gruyter September 12, 2011

Universal Service Financing in Competitive Postal Markets: One Size Does Not Fit All

Axel Gautier and Dimitri Paolini

In the postal sector, the financial burden of the universal service depends on its content, the postal market characteristics and the country’s geographical configuration. These three groups of factors affect both the direct cost of providing the service and the extent of competition on the market. In this paper, we consider countries with different geographical characteristics and we show that the choice of an appropriate mechanism to share the burden of universal service between market participants depends on the country configuration. Thus, for universal service financing, one size does not fit all.

Published Online: 2011-9-12

©2012 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

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