Quantity Discounts in the Postal Sector

23 Pages Posted: 25 Mar 2011

See all articles by Michael Crew

Michael Crew

affiliation not provided to SSRN

Paul R. Kleindorfer

University of Pennsylvania - Operations & Information Management Department; Paul Dubrule Professor of Sustainable Development & Distinguished Research Professor at INSEAD

Date Written: March 25, 2011

Abstract

As policy makers and researchers have acknowledged, there are inherent tensions between maintaining a Universal Service Obligation (USO) combined with full market opening (FMO). These tensions are exacerbated by serious intermodal competition in the form of electronic substitution for both advertising and transactions mail and were examined in Crew and Kleindorfer (2011). C-K demonstrated that retaining volumes by the USP is fundamental to retaining economies of scale in delivery, which are essential aspects of both the USO and remaining financially viable.

Suggested Citation

Crew, Michael A. and Kleindorfer, Paul R., Quantity Discounts in the Postal Sector (March 25, 2011). INSEAD Working Paper No. 2011/43/TOM. Available at SSRN: https://ssrn.com/abstract=1795124 or http://dx.doi.org/10.2139/ssrn.1795124

Michael A. Crew

affiliation not provided to SSRN ( email )

Paul R. Kleindorfer (Contact Author)

University of Pennsylvania - Operations & Information Management Department ( email )

Philadelphia, PA 19104
United States

Paul Dubrule Professor of Sustainable Development & Distinguished Research Professor at INSEAD

Boulevard de Constance
77305 Fontainebleau Cedex
France

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