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Net Costs of USP’s Service Provision: Challenges for the Coming Decade

In: The Economics of the Postal and Delivery Sector

Author

Listed:
  • Felix Gottschalk

    (Swiss Post)

  • Matthias Hafner

    (Swiss Economics)

  • Urs Trinkner

    (Swiss Economics
    University of Zurich)

Abstract

The concept of net cost of the universal service obligation (USO) is based on the profit difference of the universal service provider (USP) with and without the USO (Panzer, 2000 and Cremer et al., 2000). In recent times, USPs have been challenged with sharp declines of letter mail and transactions in post offices. As a result, net cost calculations may need to be adapted more regularly. Besides, USP undergo changes in regulation within and outside the scope of the USO. In Switzerland for example, a new provision demands that Swiss Post must deliver newspapers nationwide until 12.30. Such regulatory changes also affect net cost of the USO.

Suggested Citation

  • Felix Gottschalk & Matthias Hafner & Urs Trinkner, 2022. "Net Costs of USP’s Service Provision: Challenges for the Coming Decade," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), The Economics of the Postal and Delivery Sector, pages 251-267, Springer.
    • Handle: RePEc:spr:topchp:978-3-030-82692-5_17
    DOI: 10.1007/978-3-030-82692-5_17
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