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The future of the USO - Economic rationale for universal services and implications for a future-oriented USO

  • Christian Jaag
  • Urs Trinkner

Universal service obligations (USO) in the postal sector currently enjoy considerable attention among politicians, practitioners and academics. The primary areas of interest have been the viability, costing and funding of the USO in a completely liberalized market. However, the purpose and the scope of the USO itself have so far not been questioned fundamentally. In this paper we first analyze the possible rationale for USO from an economic point of view. Then, we discuss the impact of converging postal and telecommunications markets on potential alternative means to provide USO in a more efficient way.

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Paper provided by Swiss Economics in its series Working Papers with number 0026.

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Date of creation: Jul 2011
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Handle: RePEc:chc:wpaper:0026
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  1. Christian Jaag & Urs Trinkner, 2007. "Pricing in competitive two-sided mail markets," Working Papers 0007, Swiss Economics, revised Jul 2007.
  2. repec:rje:randje:v:37:y:2006:3:p:645-667 is not listed on IDEAS
  3. M. Maegli & C. Jaag & M. Koller & U. Trinkner, 2010. "Postal Markets and Electronic Substitution: What is the Impact of Intermodal Competition on Regulatory Practices and Institutions?," Competition and Regulation in Network Industries, Intersentia, vol. 11(4), pages 382-398, December.
  4. Michael A. Crew & Paul R. Kleindorfer (ed.), 2008. "Competition and Regulation in the Postal and Delivery Sector," Books, Edward Elgar Publishing, number 12875, March.
  5. Helmuth Cremer & Philippe De Donder & François Boldron & Bernard Roy, 2008. "Social Costs and Benefits of the Universal Service Obligation in the Postal Market," Chapters, in: Competition and Regulation in the Postal and Delivery Sector, chapter 2 Edward Elgar Publishing.
  6. Christian Jaag & Helmut Dietl & Urs Trinkner & Oliver Furst, 2012. "Defending Mail Markets Against New Entrants: An Application of the Defender Model," Chapters, in: Multi-Modal Competition and the Future of Mail, chapter 17 Edward Elgar Publishing.
  7. Christian Jaag, 2010. "Entry Deterrence and the Calculation of the Net Cost of Universal Service Obligations," Working Papers 0020, Swiss Economics.
  8. H. Cremer & F. Gasmi & A. Grimaud & J. J. Laffont, 2001. "Universal Service: An economic perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 72(1), pages 5-43, 03.
  9. Crew, Michael A & Kleindorfer, Paul R, 1998. "Efficient Entry, Monopoly, and the Universal Service Obligation in Postal Service," Journal of Regulatory Economics, Springer, vol. 14(2), pages 103-25, September.
  10. Matthias Finger & Rolf W. Künneke (ed.), 2011. "International Handbook of Network Industries," Books, Edward Elgar Publishing, number 12961, March.
  11. Christian Jaag & Urs Trinkner, 2011. "The interaction between universal service costing and financing in the postal sector: a calibrated approach," Journal of Regulatory Economics, Springer, vol. 39(1), pages 89-110, February.
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