This paper enhances the defender model by explicitly modeling the cost associated with quality attributes. It considers two firms and two quality attributes which cause fixed and variable cost, respectively, together with the price attribute. Hence, firms compete in three dimensions. The optimal...

Increased direct and indirect competition in the postal sector represents a great challenge to the traditional business model of postal operators. It is often put forward that regulatory institutions need to evolve in parallel and coherently with developments in the market place in order to...

This paper assesses the potential of a combined “USO in communications”, i.e. a USO that simultaneously defines the physical and digital requirements for the conveyance of communication irrespective of the specific sector.

In this paper we develop a stylized model of competition between brick-and-mortar merchants and online retailers. An offline transaction, matching payment with delivery, is without risk for both the seller and the buyer. In an online transaction the seller faces the potential risk of non-payment...

Universal service providers (USP) are increasingly active in business segments other than the segment consisting of their Universal Service Obligation (USO). Price regulation of USO services is usually cost-oriented and differentiated between USO- and non-USO-products. Hence, regulatory rules on...

This paper analyzes the market regulations and USO as defined in the Swiss Postal Act and their interaction with competition law. Specifically, the paper covers the following aspects of the regulatory framework for the postal sector in Switzerland: First, the scope of the USO, consisting of...

Die Höhe der Preise für Konsumgüter in der Schweiz gibt immer wieder und insbesondere aufgrund der aktuellen Frankenstärke zu Diskussionen Anlass. Dies gilt auch und insbesondere für die Briefpreise in der Schweiz. Die Preise im Monopolbereich der Post müssen sich jährlich wiederkehrend...

Driven by market opening and increased competition from electronic communication, postal operators have started extending their scope of business by offering hybrid mail services in addition to physical mail conveyance. This paper discusses commercial and regulatory aspects of reverse hybrid...

This paper argues that transforming the postal business model goes hand in hand with a transformation in the definition of universal service obligation. Whilst postal operators need to fully embrace the unique competitive space created by electronic substitution, at the intersection between the...

The financing of the Universal Service Obligation (USO) in network industries has traditionally relied on granting the provider exclusive rights. Full liberalization has created the need for alternative funding mechanisms. This has increased the interest of regulators and the public in...