IDEAS home Printed from
   My bibliography  Save this paper

Calculating the net cost of home delivery


  • Andreas Haller
  • Christian Jaag
  • Urs Trinkner


This paper analyzes whether frequency of delivery and nationwide coverage obligations constitute USO net costs. With no USO on home delivery in place, the USP may be able to increase profits by optimizing its delivery services. Three such optimizations are scrutinized in detail: (1) adjusting the number of weekly delivery days, (2a) discontinuing delivery services to certain areas and (2b) adjusting the place of delivery for households that are particularly costly to serve. The first measure relates to the frequency of delivery obligation, whereas the latter two concern the requirement of nationwide coverage of home delivery. Under robust demand assumptions both frequency and coverage obligations constitute USO net costs. The USO in delivery hence represents binding constraints on operators.

Suggested Citation

  • Andreas Haller & Christian Jaag & Urs Trinkner, 2013. "Calculating the net cost of home delivery," Working Papers 0041, Swiss Economics.
  • Handle: RePEc:chc:wpaper:0041

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Universal service obligation; Postal sector; Net cost; Delivery;

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:chc:wpaper:0041. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Jaag). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.