Access pricing, bypass and universal service in post

A postal regulator typically faces two issues which make the design of efficient access pricing especially difficult and which complicate the process of liberalizing the industry. First, universal service obligations, together with the presence of fixed costs, require retail prices to depart from the underlying marginal costs of the incumbent provider. Second, competing firms may be able to bypass the incumbent’s delivery network. Within a simple and stylized framework, this note analyzes how access charges should best be set in the light of these twin constraints

Two sided markets, competitive bottlenecks and exclusive contracts

We provide a framework for analyzing two-sided markets that allows for different degrees of product differentiation on each side of the market. When platforms are viewed as homogenous by sellers but heterogeneous by buyers, we show that “competitive bottlenecks” arise endogenously. In equilibrium, platforms do not compete directly for sellers, instead choosing to compete indirectly by subsidizing buyers to join. Sellers are left with none of the gains from trade. Despite this, it is sellers who choose to purchase from multiple platforms (multihome). Finally, the role of exclusive contracts to prevent multihoming is explored

Recent developments in the economics of price discrimination

This paper selectively surveys the recent literature on price discrimination. The focus is on three aspects of pricing decisions: the information about customers available to firms; the instruments firms can use in the design of their tariffs; and the ability of firms to commit to their pricing plans. Developments in marketing technology mean that firms often have access to more information about individual customers than was previously the case. The use of this information might be restricted by public policy towards customer privacy. Where it is not restricted, firms may be unable to commit to the use they make of the information. With monopoly supply, an increased ability to engage in price discrimination will boost profit unless the firm cannot commit to its pricing policy. With competition, the effects of price discrimination on profit, consumer surplus and overall welfare depend on the kinds of information and/or instruments available to firms. The paper investigates the circumstances in which price discrimination causes all prices (and hence profit) to fall

An eco-solution for track & trace of goods and third party logistics

This paper presents a new economic cost-effective solution known as the Web and telephony based method for tracking and tracing of goods and small and medium sized third party logistic providers. Considering that these companies usually operate on very flat margins, a comparison is made of the available track and trace technologies like GPS, mobile phone approximated GPS and Java based cell tracking in terms of costs, operating risks, and other evaluation criteria

Regulation, competition, and liberalization

In many countries throughout the world, regulators are struggling to determine whether and how to introduce competition into regulated industries. This essay examines the complexities involved in the liberalization process. While stressing the importance of case-specific analyses, this essay distinguishes liberalization policies that generally are pro-competitive from corresponding anti-competitive liberalization policies

Elimination of subharmonics in direct look-up table (DLT) sine wave reference generators for low-cost microprocessor-controlled inverters

This paper investigates distortion of an inverter reference waveform generated using a direct look-up (DLT) algorithm. The sources of various distortion components are identified and the implications for application to variable speed drives and grid connected inverters are described. Harmonic and subharmonic distortion mechanisms are analyzed, and compared with experimental results. Analytical methods are derived to determine the occurrence of subharmonics, their number, frequencies and maximum amplitudes. A relationship is established identifying a discrete set of synthesizable frequencies which avoid sub-harmonic distortion as a function of look-up table length and a practical method for calculation of the look-up table indices, based on finite length binary representation, is presented. Real time experimental results are presented to verify the analytical derivations