Entry in posts: why might it be limited?

George Houpis (Frontier Economics, London) presented a paper to the 10th Conference on Postal and Delivery Economics ("Brand Loyalty and Entry in PostalMarkets", P. Burns, I. Carslake and G. Houpis, Frontier Economics, London) examining the reasons for which entry in postal markets has been limited, even where there has been full liberalisation (removal of the monopoly area). The paper argues that the incumbents can use their advantage in terms of reputation and product portfolio to deter, and in some cases prevent entry. It provides also the implications of such behaviour for new entrants, regulators and incumbents.