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Brand, Product Differentiation and Postal Market Outcomes

  • Isabelle CarslakeEmail author
  • George Houpis
  • Ellie Monaghan
Chapter
Part of the Topics in Regulatory Economics and Policy book series (TREP)

Abstract

Letters markets were opened to full competition by 2011 in most EU countries. We can thus observe some market outcomes post liberalization: the broad picture suggests that customers have been somewhat sticky. In this paper, we use a differentiated Bertrand economic model—typically used for merger simulation—to assess possible factors that affect the development of competition in post. This model captures the apparent characteristics of different postal products markets based on evidence of current market outcomes and can assist policy makers in evaluating policies and assessing the strength of some determinants of market outcomes, such as product differentiation and possibly relative strength of the brand of the incumbent.

Notes

Acknowledgements

The views expressed in this paper are solely attributable to its authors and do not necessarily represent those of Frontier Economics. The authors thank Ankit Parasrampuria at Frontier Economics for his research support.

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Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Isabelle Carslake
    • 1
    Email author
  • George Houpis
    • 1
  • Ellie Monaghan
    • 1
  1. 1.Frontier EconomicsLondonUK

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