Liberalization of the Swiss Letter Market and the Viability of Universal Service Obligations
We discuss the ongoing liberalization process in the market for addressed letter mail in Switzerland. The paper assesses the impact of the liberalization on the financial viability of various universal service obligations with and without access to the incumbent's downstream delivery network for customers and competitors. We propose a calibrated model of the Swiss letter market offering theoretical insights into the mechanics ofmarket opening alongwith quantitative conclusions bearing direct policy relevance. It turns out that full market opening would require a sharply reduced uso with respect to the frequency and the coverage of delivery or a sharp price increase.
Volume (Year): 143 (2007)
Issue (Month): III (September)
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- Beat Friedli & Christian Jaag & Daniel Kraehenbuehl & Ole Bach Nielsen & Søren-Michael Pihl & Urs Trinkner, 2006. "Consumer preferences and last mile pricing in the postal sector," Working Papers 0004, Swiss Economics, revised Jul 2006.
- Barros, Pedro Luis Pita & Hoernig, Steffen & Valletti, Tommaso, 2001.
"Universal Service and Entry: the Role of Uniform Pricing and Coverage Constraints,"
CEPR Discussion Papers
2789, C.E.P.R. Discussion Papers.
- Valletti, Tommaso M & Hoernig, Steffen & Barros, Pedro P, 2002. "Universal Service and Entry: The Role of Uniform Pricing and Coverage Constraints," Journal of Regulatory Economics, Springer, vol. 21(2), pages 169-90, March.
- Helmut M. Dietl & Urs Trinkner & Reto Bleisch, 2004. "Liberalization and Regulation of the Swiss Letter Market," Working Papers 0001, Swiss Economics, revised Jul 2005.
- Christian Jaag & Urs Trinkner, 2008.
"Pricing in Competitive Two-Sided Mail Markets,"
in: Competition and Regulation in the Postal and Delivery Sector, chapter 10
Edward Elgar Publishing.
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