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Impact of Discontinuance of Saturday Delivery for Letters and Flats

Author

Listed:
  • Urs Trinkner
  • Andreas Haller

Abstract

Delivery costs are the largest segment of total costs incurred by the United States Postal Service (USPS). These costs comprise 38 percent of total operating costs. Accurately assessing how unit delivery costs behave is crucial to properly attribute costs to products. This report presents the application of a model for estimating the relationship between the cost of city carrier delivery and the number of delivery points receiving mail, as well as the volume of mail to be delivered. This model uses data from the Postal Service that allow the identification of the geographic location of all delivery points served by each delivery route, the volume delivered on the route each day, and the time spent on the route by the carrier. The model simulates each route, determining the shortest linear distance to serve all delivery points receiving mail.

Suggested Citation

  • Urs Trinkner & Andreas Haller, 2014. "Impact of Discontinuance of Saturday Delivery for Letters and Flats," Studies and Reports, Swiss Economics, pages 1-65, February.
    • Handle: RePEc:chc:studse:0010
    as

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    File URL: http://www.swiss-economics.ch/RePEc/files/S0010PRC.pdf
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    References listed on IDEAS

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    1. C. Jaag & U. Trinkner & J. Lisle & N. Waghe & E. Van Der Merwe, 2011. "Practical Approaches to USO Costing and Financing," Competition and Regulation in Network Industries, Intersentia, vol. 12(2), pages 108-130, June.
    2. Urs Trinkner & Bernd Holznagel & Christian Jaag & Helmut Dietl & Haller Andreas, 2012. "Möglichkeiten eines gemeinsam definierten Universaldienst Post und Telekommunikation aus ökonomischer und juristischer Sicht," Studies and Reports, Swiss Economics, pages 1-79, September.
    3. Andreas Haller & Christian Jaag & Urs Trinkner, 2013. "Calculating the net cost of home delivery," Working Papers 0041, Swiss Economics.
    4. Cátia Felisberto & Matthias Finger & Beat Friedli & Daniel Krähenbühl & Urs Trinkner, 2006. "Pricing the Last Mile in the Postal Sector," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Paul R. Kleindorfer (ed.), Progress toward Liberalization of the Postal and Delivery Sector, chapter 0, pages 249-264, Springer.
    5. Panzar, John C., 2000. "A methodology for measuring the costs of universal service obligations," Information Economics and Policy, Elsevier, vol. 12(3), pages 211-220, September.
    6. Andreas Haller & Christian Jaag & Urs Trinkner, 2014. "Calculating the net cost of home delivery obligations," Chapters, in: Michael A. Crew & Timothy J. J. Brennan (ed.), The Role of the Postal and Delivery Sector in a Digital Age, chapter 17, pages 227-239, Edward Elgar Publishing.
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    Cited by:

    1. Matthew H. Robinson & J. P. Klingenberg & Andreas Haller & Urs Trinkner, 2015. "Estimating the Financial Impact of Discontinuing Saturday Delivery of Letters and Flats in the U.S," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Timothy J. Brennan (ed.), Postal and Delivery Innovation in the Digital Economy, edition 127, pages 155-168, Springer.

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