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USO Net Costs and Economies of Scope Between Letters and Parcels

In: Postal Strategies in a Digital and Green Transition

Author

Listed:
  • Ramon Gmür

    (Swiss Economics and University of Zurich)

  • Felix Gottschalk

    (Swiss Post Ltd.)

  • Matthias Hafner

    (Swiss Economics and University of Zurich)

  • Urs Trinkner

    (Swiss Economics and University of Zurich)

Abstract

We present quantitative evidence for substantial economies of scope between letters and parcels in rural areas. The presence of economies of scope indicates that it is cost-efficient to distribute letters and parcels with the same carrier rather than having two independent delivery organizations for them separately. In the context of USO net costs calculations and operational business decisions with shrinking letter volumes and growing parcel volumes, it is important to accurately account for such economies of scope. More explicitly, considering economies of scope will likely decrease estimated USO net costs and, depending on volume conditions, USO constraints and regional characteristics, render the joint delivery of letters and parcels more attractive.

Suggested Citation

  • Ramon Gmür & Felix Gottschalk & Matthias Hafner & Urs Trinkner, 2026. "USO Net Costs and Economies of Scope Between Letters and Parcels," Topics in Regulatory Economics and Policy, in: Anna Renata Pisarkiewicz & Timothy J. Brennan & Leonardo Mazzoni & Victor Glass (ed.), Postal Strategies in a Digital and Green Transition, pages 101-119, Springer.
    • Handle: RePEc:spr:topchp:978-3-032-00502-1_8
    DOI: 10.1007/978-3-032-00502-1_8
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