Privatization and Universal Service Obligations

Authors: Bel, Germà; Calzada, Joan

Source: Journal of Institutional and Theoretical Economics JITE, Volume 165, Number 4, December 2009 , pp. 650-669(20)

Publisher: Mohr Siebeck

Buy & download fulltext article:

Price: $33.00 plus tax (Refund Policy)

Abstract:

Telecommunications, airlines, and postal services have similar economic features. However, they have followed different privatization patterns. While privatization of the universal service provider (USP) is common in telecommunications and airlines, it is by far less frequent in the postal sector. This paper analyzes how the size of the universal service obligation (USO) and the mechanisms traditionally used to finance it have prevented privatization in the postal sector. By using a model of a mixed duopoly, we explain that privatization is inversely related to the cost of public funds for USO transfers and to the size of the USP's reserved area.

Document Type: Research article

DOI: http://dx.doi.org/10.1628/093245609789919685

Publication date: 2009-12-01

More about this publication?

Founded as Zeitschrift f�r die gesamte Staatswissenschaft in 1844.

As one of the oldest journals in the field of political economy, the Journal of Institutional and Theoretical Economics (JITE) deals traditionally with the problems of economics, social policy, and their legal framework. JITE is listed in the Journal of Economic Literature, the Social Science Citation Index, the International Bibliography of the Social Sciences, and COREJ.
Editorial Board
Information for Authors
Subscribe to this Title
Information for Advertisers
Terms & Conditions
Beitrage zur Finanzwissenschaft
Neue okonomische Grundrisse
Conferences on New Political Economy
ingentaconnect is not responsible for the content or availability of external websites