The focus of our paper is on the competitive effects of the proposed VAT regime relative to selected alternatives. We also highlight the welfare effects of various VAT scenarios. While an exempt operator cannot reclaim VAT paid on inputs (relevant for non-labor inputs only) and therefore faces...

There is an increasing convergence between postal products and telecom applications which suggests the need for a co-evolution of regulation. But there is hardly any discussion in academia or in practice about the consequences for regulation. Relevant questions are: Which parts of current...

In this paper we set out a holistic approach that incorporates recent developments in assessing the net cost of the USO and presents a robust methodology for practical implementation. We analyse the issues relating to assessing the net costs of the USO with particular focus on the benefits...

Market opening in the postal sector invites competition, but it may also present challenge to financing the universal service obligation (USO) currently in place. USO financing under entry is challenged both by the loss of revenues and scale economies in combination with the affordability...

The financing of universal service provision in the postal sector has traditionally relied on granting the universal service provider a reserved area. Together with growing electronic substitution, current liberalization policies promoting competitive entry may put the traditional universal...

In the past decades, several countries have introduced reverse auctions for allocating universal service or public mission subsidies in various industries. Examples include urban transport, air transport and telecommunications. Recently, such mechanisms have also been envisioned in liberalized...

The paper analyzes consumer preferences towards a potential two-part tariff in the postal sector. Based on the empirical results we analyze the welfare effects of a two-part tariff when applied in the Swiss letter market.

The paper presents the basic approaches to calculate the cost of the USO and compares them with the requirements of the 3rd postal directive. We conclude that the profitability cost approach will lead to consistent estimations if it is applied in a global way. We illustrate our findings with an...

The paper analyzes recent restructurings of post office networks. Based on these findings an on a time-series estimation of the impact of Swiss Post’s recent realignment of its network on overall mail demand we derive three generic strategies for the long term alignment of Post office networks.

We analyze whether it makes sense to auction off Universal Service Obligations in postal markets. Based on auction theory, case studies and sector-specific considerations we conclude that auctions will be difficult to implement in the postal sector.