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Ramsey Pricing In Turkey Postal Services

This study aims to provide an empirical investigation of Postal Services pricing in Turkey by way of computing Ramsey prices and examining the sensitivity of Ramsey prices to changes in demand and cost parameters. In this study, the Ramsey pricing problem is stated as maximizing a welfare function subject to the Post Office attaining a certain degree of profitability.

The conditions necessary for the Post Office to be able to price efficiently have implications for Ramsey pricing. We estimate demand functions and cost structure of letters and express mail using data from Turkish Postal Services. The robustness of the Ramsey rule is assessed under alternative estimates of demand and similarly, in the absence of reliable data, under alternative intervals of marginal cost.

Ramsey prices for two letter categories and welfare gains of moving from the existing pricing structure to Ramsey are determined and examined. Sensitivity analysis indicates that the existing policy is not Ramsey optimal and that this is a fairly robust result.

Identiferoai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/2/669697/index.pdf
Date01 September 2003
CreatorsOzugur, Ozgur
ContributorsGuven, Caglar
PublisherMETU
Source SetsMiddle East Technical Univ.
LanguageEnglish
Detected LanguageEnglish
TypeM.S. Thesis
Formattext/pdf
RightsTo liberate the content for public access

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