This paper analyzes the net cost of universal service obligations in the postal sector after full liberalization and the potential burden they represent for the universal service provider. It considers various interpretations of what an ‚unfair burden. might be and discusses the competitive...

The paper analyzes the impact of different regulatory models on competition and welfare in the Swiss letter market. We conclude that the US system worksharing yields the best results.

The paper first analyzes if there is a need to develop universal postal services in developing countries. We conclude that postal services serve vital functions in economies now and for the foreseeable future. We then discuss regulatory remedies that will foster the evolution of universal postal...

This paper relates to the current discussion about how to measure the net cost and unfair burden of universal service provision in network industries. The established profitability cost approach compares the profit of a universal service provider (USP) with and without a universal service...

The financing of universal service provision in the postal sector has traditionally relied on granting the universal service provider a reserved area. Together with growing electronic substitution, current liberalization policies promoting competitive entry may put the traditional universal...

In the past decades, several countries have introduced reverse auctions for allocating universal service or public mission subsidies in various industries. Examples include urban transport, air transport and telecommunications. Recently, such mechanisms have also been envisioned in liberalized...

Based on a cross-section data set of 2004 reflecting Swiss Post’s delivery cost we estimate its cost function and derive measures of economies of scale, density and scope.

Based on historical data from 1980 to 2004 the paper analyzes the main drivers of mail demand and the impact of e-substitution by using time-series techniques. We find strong evidence for e-substitution. In the second part of the paper we provide forecasts for future mail volumes.

The paper presents the basic approaches to calculate the cost of the USO and compares them with the requirements of the 3rd postal directive. We conclude that the profitability cost approach will lead to consistent estimations if it is applied in a global way. We illustrate our findings with an...

The paper analyzes recent restructurings of post office networks. Based on these findings an on a time-series estimation of the impact of Swiss Post’s recent realignment of its network on overall mail demand we derive three generic strategies for the long term alignment of Post office networks.