You have been commissioned by a consumer group to help them analyse, understand and critique the decision by the ACCC to allow Australia Post to increase the cost of stamps (further details are outlined in the media article).
The consumer group is a bit annoyed with the decision to raise the price of stamps and wants to investigate the issue further. In particular they are keen to lobby the ACCC to reconsider their decision or to agitate the federal government to explore alternatives to keep the cost of postage down.
They have asked you to write a brief report for them. No more than 1200 words
Somewhere in the report, discuss the following:
1.
What is the institutional and economic environment facing Australia Post including changing demand conditions and the relationship to the government and the ACCC?
2. How could it be argued that allowing the rise in stamp prices was unnecessary and wrong?
3. What are the alternatives? In particular an economist at the consumer group has suggested that Australia Post’s mail monopoly could be ended or that the company could be privatised.
1. Executive Summary
- single paragraph
- outline:
o purpose
o findings
o conclusion
2. Introduction
- Briefly discuss newspaper article
- The context for the decision regarding stamp prices (including demand conditions)
- Institutional relationships between Australia Post, ACCC and the government [this should address concern 1 above]
- Briefly outline the structure of the remainder of your report
3. Conceptual Framework
- Outline conceptual framework (along the lines of that discussed in lectures, regarding the regulation of monopolies.
- Discuss:
o prices
o quantities
o profits
o costs
o may also insert at least one figure here
4. Analysis
- Provide some analysis of the decision:
o why was it made? (ACCC reports)
o was it a reasonable decision?
o what are the alternatives?
