IDEAS home Printed from https://ideas.repec.org/h/spr/topchp/978-0-387-23637-7_2.html
   My bibliography  Save this book chapter

Will Entrants into a Liberalized Delivery Market Attract Investors

In: Regulatory and Economic Challenges in the Postal and Delivery Sector

Author

Listed:
  • Robert H. Cohen

    (U.S. Postal Rate Commission)

  • Matthew Robinson

    (U.S. Postal Rate Commission)

  • Renee Sheehy

    (U.S. Postal Rate Commission)

  • John Waller

    (U.S. Postal Rate Commission)

  • Spyros Xenakis

    (U.S. Postal Rate Commission)

Abstract

6. Conclusions Based on the results given above, we make the following conclusions concerning the potential for obtaining venture capital for an entrant delivery service. 1. It is unlikely that a realistic business plan will attract capital for an entrant delivery service in a liberalized postal market with characteristics like the U.S. market. Thus, liberalization is unlikely to trigger a graveyard spiral. 2. In order to achieve an IRR sufficient to attract venture capital, about two thirds of bulk mail would hive to be contestable. This is highly unlikely. 3. The most significant variables in a business plan are: a) the amount of contestable mail in the market served b) the rate at which the business grows to its maximum volume c) marketing and overhead expenses as a share of revenue d) the number of days of delivery per week. More scenarios can be examined with the models presented here. In addition, the models can be enchanced with new input variables for future research.

Suggested Citation

  • Robert H. Cohen & Matthew Robinson & Renee Sheehy & John Waller & Spyros Xenakis, 2005. "Will Entrants into a Liberalized Delivery Market Attract Investors," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Regulatory and Economic Challenges in the Postal and Delivery Sector, chapter 0, pages 31-51, Springer.
    • Handle: RePEc:spr:topchp:978-0-387-23637-7_2
    DOI: 10.1007/0-387-23637-6_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. R. Richard Geddes, 2005. "Policy Watch: Reform of the U.S. Postal Service," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 217-232, Summer.
    2. Joan Calzada, 2009. "Access charges under two-tier pricing," Journal of Regulatory Economics, Springer, vol. 35(3), pages 296-311, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:topchp:978-0-387-23637-7_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.