Postal Strategies: Logistics, Access, and the Environment

Preface and Acknowledgements
Contents
Competitive Strategies of Marketplaces Vis-À-Vis Logistic Choices: Issues of Efficiency and Competition
1 Introduction
2 Vertical Integration and Ecosystems
3 Platform Strategy and Logistic Choices  
4 Competition and Efficiency Trade Offs
5 Leveraging Through Tying and Bundling 
6 Transactions Costs
7  Conclusions 
Bibliography 
Lessons from the Experience of Telecommunications Regulation for Regulation in the EU Package Delivery Industry, with Focus on Access Regulation
1 Introduction
2 Lessons from the Experience of Telecommunications Regulation and their Application to Package Delivery
2.1 Where did Telecom Regulation Succeed and Where Might It Have Fallen Short?
2.2 What Lessons Can We Draw from the Experience of Telecommunications Regulation?
2.3 Applying the Lessons of Telecom to the Regulatory Concerns in the Package Delivery Sector
3 Conclusions
Bibliography
Self-Provision by Online Platforms Vertically Integrated into Delivery Activities
1 Introduction
2 Should Vertically Integrated Online Platforms Be Considered as Postal Operators?
2.1 The Delivery Activity of Online Platforms
2.2 How Vertically Integrated Platforms Are Considered in Europe
3 Self-Provision
3.1 Legal Profile
3.2 Economic Profile
4 Self-Provided Delivery as a Postal Activity
5 The Italian and Spanish Amazon Cases
6 Conclusions
References
The Confluence of Competition Law, Consumer Protection, and Sector-Specific Regulation in the Postal, Delivery, and Related Sectors
1 Introduction
2 Competition Law
2.1 Prohibition of Anti-competitive Agreements
2.2 Abuses of a Dominant Position
2.3 State Aid
2.4 Special or Exclusive Rights
2.5 Mergers
3 Consumer Protection
4 Postal Regulation
4.1 Green Paper
4.2 Universal Service Obligations
4.3 Scope of Postal Services as Defined by Postal Directive
4.4 Courier Express Parcel Services
4.5 Other Services Provided by Postal Administrations
5 The Confluence of Competition Law, Consumer Protection, and Postal Regulation
6 ERGP Concerns
7 Enforcement and Conclusions
7.1 Institutions
7.2 Double Jeopardy
8 Conclusions
References
Double Jeopardy Between Regulatory and Competition Proceedings: The bpost Judgment and the Digital Markets Act
1 Introduction
2 The ne bis in idem Principle and the Two Lines of Case Law of the Court
3 The bpost Case: Facts and Proceedings at the National Level
4 The Judgment of the Court
5 Implications for the Enforcement of the DMA
6 Conclusion
Bibliography
Twenty-Five Years of the National Postal Regulators in the EU: A Critical Review
1 Introduction
2 Regulation
3 National Regulatory Authorities
4 NRAs in the EU Law
5 The NRAs’ Ability to Perform Their Duties
6 NRA and the USO Regulation
7 NRA and the Other Regulatory Obligations
7.1 The Czech Rep
7.2 Germany
7.3 UK
7.4 Ireland
7.5 Portugal
7.6 Spain
7.7 Netherlands
7.8 Sweden
8 Conclusions
References
Locked into an Access Mindframe? Reflections on Access Regulation in Postal and Delivery Based on the Case of Parcel Lockers
1 Recent Policy Developments Regarding the Regulation of Access to Parcel Lockers
1.1 Recent Calls for Regulating Access to Parcel Lockers
1.2 Potential Market Failures and Competition Issues Related to Parcel Locker Infrastructures
2 Key Risks and Challenges of Regulating Access to Parcel Lockers
2.1 Is There a Valid Theory of Harm?
2.2 What is the Likely Effect of the Remedy?
2.3 Is the Remedy Robust to Market Dynamics?
3 Economic Methods for Validating the Theory of Harm and Assessing the Likely Effects of Remedies Concerning Access to Parcel Lockers
3.1 Assessment of First-Mover Occupancy/Land Banking Theory of Harm Through Web Scraping and Catchment Area Analysis
3.2 Assessment of Consumer Switching Patterns, Consumer Behavior, and Substitutability
3.3 Quantitative Tools for Regulatory Impact Analysis
4 Future Research Possibilities
References
Do We Need Regulation for Parcel Lockers?
1 Introduction
2 The Market of Parcel Lockers in Europe
2.1 Business Models
2.2 A Fast-Evolving Sector
3 What is an Essential Facility?
3.1 Legal Definition
3.2 Economic Definition
4 Parcel Lockers, a New Possibility to Deliver Parcels
4.1 Parcel Lockers Are Part of the Distribution Network
4.2 Parcel Locker Networks in the Public Space Cannot Be Qualified as Essential Facilities
4.3 Residential Parcel Lockers, an Essential Facility?
5 What About Today’s Regulation of Parcel Lockers?
5.1 Ex Ante Regulation for Parcel Lockers in Public Spaces
5.2 Residential Parcel Lockers, the French Example
6 Conclusion
References
A Universal Support Fund for Postal Services in the United States
1 Introduction: USPS at a Crossroad
2 A Support Fund for Postal Universal Service?
3 Net Cost
4 Pros and Cons of Setting a Compensation Fund
5 Pros and Cons of State Financing
6 A Proposal for the United States
7 Conclusion
References
Incentives of Compensating USO Net Costs
1 Introduction
2 Review of the Literature
3 Intuition: Sharing Gains Preserves Incentives
4 Simulation: Effects of Measures on Net Costs and Profits
4.1 Calibration Benchmark Scenario (No USO)
4.2 Calibration of the USO Scenario
4.3 Baseline Effects of Increased Efficiency and Growth on Overall Profits and Net Costs
4.4 Intersegment Effects and Effects of Cost Allocation Rules
5 Conclusions
References
Public Funding and Industrial Synergies: How They Impact on the Calculation of the Net Cost of the USO?
1 Introduction
2 Funding the Universal Service Obligation (USO)
2.1 Current Legal and Regulatory Framework
2.2 Challenges Around the Calculation of the USO Net Cost Burden
2.3 USO Compensation Scrutiny and Increasing Funding Streams Available for USPs
3 How USPs Innovate: Synergies Between Letter Mail and Parcel Delivery Services
3.1 Coping with Volume Shift and USO Challenges
3.2 Investments to Address Parcel Delivery and Integration of Letter and Parcel Services
3.3 Joint Use of Technologies and Physical Infrastructures
4 Implications of Synergies for the USO Net Cost and Compensation
5 Conclusions and Recommendations
References
Can Parcel Growth Support the Sustainability of the USO?
1 Introduction
2 European Postal Market Trends
3 Modelling the Impact of Volume Changes on USP Revenues and Costs
4 Scenario Analysis
5 Profitability of a USPs Under Growing Demand for Parcels
6 Conclusion
Annex A—Price Ratio Letter Parcel
References
E-commerce’s Effects on the Turkish Postal Market: From Classical to New Business Models
1 Introduction
2 The Turkish Postal Market
2.1 Legal Framework
2.2 Market Landscape
2.3 Market Trends
3 Regulatory Challenges
3.1 PUDO Points and Lockers
3.2 Virtual Postal Operators
3.3 The Subcontractor Model
3.4 Instant Delivery Models
4 Regulatory Sandbox
5 Conclusion
References
Compensation of Net Costs Generated by SGEIs. Examples from Different European Network Industries
1 Introduction
2 What Is an SGEI and How it Is Funded
3 Bpost’s SGEIs
4 Local Public Transport in Germany
5 Lessons to Be Learned for the Financing of the Postal USO
6 Conclusion
References
E-commerce and Parcel Delivery: Environmental Policy with Green Consumers
1 Introduction
2 Model
3 First Best
4 Equilibrium When Consumers Observe Emissions
5 Observability of Emissions
6 Imperfect Competition in the Last-Mile Parcel Delivery Sector: Independent Firms
6.1 The Game
6.2 Equilibrium
6.3 Implementation of the First Best
7 Vertical Integration Between Operator 2 and Retailer B
7.1 Implementation of the First Best
8 Heterogeneity in the Level of Environmental Concern
9 Revelation of Emissions Levels
10 Concluding Comments
References
Using Pricing as a Tool to Achieve Carbon Neutrality: Implications for the United States Postal Service
1 Introduction
2 Literature Review
2.1 Emissions Intensity of Mail and Package Delivery
2.2 USPS GHG Emissions
3 Demand for Carbon–Neutral Postal Services
3.1 Consumer Demand
3.2 Demand Related to Corporate and Regulatory Risk Mitigation
4 Existing Carbon Emissions Reduction Strategies of Postal Operators
5 Potential Pricing and Product Design Strategies for Achieving Carbon Neutrality
5.1 All-In Pricing
5.2 Premium Pricing Strategy
5.3 Discount Pricing
6 Conclusion
Bibliography
The Environmental Footprint of Home and Out-of-Home Parcels Delivery
1 Introduction
2 The Impacts of the Covid-19 Crisis on E-commerce and Last-Mile Parcels Delivery Activity
2.1 A Strong Increase in Online Purchases and Parcels Volumes
2.2 An Increase in the Popularity of Out-of-Home Delivery Leading to Investments in Parcels Lockers Stations
3 Out-of-Home (OOH) Deliveries: More Sustainable Solutions Than Deliveries at Home?
3.1 Arguments in Favor of OOH Deliveries
3.2 Lessons from Academic Literature
4 How to Help End Consumers to Make the Better Choice?
4.1 Consumers’ Environmental Awareness and Willingness to Pay to Promote More Sustainable Solutions
4.2 How to Best Inform Consumers?
4.3 Once the Information on Emissions Is Available, How to Induce Consumers to Make the Most Sustainable Choice?
5 Conclusion
References
Supporting Postal Services Through Location-Based Fees
1 Introduction and Summary
2 Deriving the Cost Relationship
3 Computing the Location Price
4 Numerator Controversy: Institutional Costs and Cross-Subsidization
5 Denominator Controversy: Delivery Point Cost Variation
6 Implementation Resistance
6.1 Equal Fee Per Location?
6.2 Equal Delivery Point Fee Regardless of Mail Volume?
6.3 Dropping off the Grid
6.4 Might Price Caps for Delivery Fees Help?
7 Conclusion
References
Allocating Fixed Costs of the Outdoor Delivery: A Cooperative Game Approach
1 Introduction
2 Allocation Rules of the Outdoor Delivery Fixed Costs of La Poste
2.1 The Delivery Speed of the Postal Items
2.2 The Format of the Postal Items
3 Allocating Fixed Costs of the Outdoor Delivery Through Cooperative Games
3.1 Format Allocation Through a Classical Cooperative Game
3.2 Delivery Speed Allocation Through an Airport Game
4 Conclusion
Bibliography
On Efficient Rate Design
1 Introduction
2 Efficient Hedonic Pricing
3 The Derivation of Propositions 1 and 2
4 Designing Efficient Prices
5 Example: Weight Per Piece
6 Further Thoughts
7 Conclusion
Appendix: The Basics of the Algebraic Method
References
Measuring and Communicating a Universal Service Provider’s Wider Economic Value: Swiss Post’s Example
1 Introduction
2 Literature Review
3 Framework
4 Results
4.1 Input–Output Model
4.2 Other Approaches
4.3 Communicative Usage
5 Conclusion
References
How the COVID-19 Crisis is Impacting Postal Markets? A New Assessment One Year Later
1 Introduction
2 Some Figures on the Postal Sector
3 Econometric Analysis to Assess the Impact of COVID-19
4 What Would Have Happened Without COVID-19?
5 Conclusion
References
UK Parcel Market Trends in the Pre- and Post-COVID Environment: An Initial Assessment
1 Introduction
2 The Parcel Market, E-commerce and Post-COVID Consumer Trends
3 Time Series Analysis and Econometric Modelling of Parcel Market Trends
3.1 Time Series Analysis and Estimates of the Post-COVID Uplift in Parcel Volumes
3.2 An Econometric Analysis of the Demand for Parcels
4 An Initial Assessment of the Impact of COVID on UK Parcel Volumes
5 Summary and Conclusion
References
Exploring the Use of Control Theory to Describe and Assess the UK’s Postal Regulatory Framework, Including Lessons That Can Be Learnt and Applied from This Tool for Regulation
1 Introduction
2 Control Theory
2.1 Definition(s) of Control Theory and Its Purpose
2.2 Practical Realities
2.3 Control Theory—Extending the Simple Worked Example to Include Two or More Feedback Loops
3 Application to Regulation and Economic Theory
3.1 1930’s
3.2 1970s
4 Application to Postal Regulation
4.1 Setting up and Reviewing Performance Standards
4.2 Ensuring Performance Standards Are Delivered
5 Discussion and Findings
5.1 Application of Control Theory in the Postal Sector
5.2 Application of Control Theory in Other Regulated Sectors
6 Conclusions and Future Work
6.1 Conclusions
6.2 Summary
6.3 Future Work
Bibliography
On the Prediction of the Postal Service’s Marginal and Total Operating Costs
1 Introduction
2 Model Building
2.1 Volume Variable Cost, Attributable Cost, and Institutional Cost
2.2 Constructing the Estimators
3 Data and Estimation Results
3.1 Data Sources
3.2 Estimation Results
4 Conclusion
Appendix A: Additional Tables
Appendix B: The Kernel Regulated Least Squares Estimation
References
Logistics Constraints for International E-commerce
1 Introduction
2 The Data Set
3 Econometric Specification
4 Empirical Results
5 Conclusion
References
Transparency Initiatives in the Belgian Postal Sector
1 Introduction
2 Definition and Legal Framework
2.1 European General Rules
2.2 European Postal Legislation
3 The Rise in E-Commerce
4 Transparency Toward the Consumer
5 Transparency Toolbox in Belgium
5.1 Market Overview
5.2 CO2 Calculator
5.3 Postal Networks and Tariffs
6 Toward European Harmonization?
7 Conclusion
Bibliography