The Postal and Delivery Contribution in Hard Times

The Conference Was Kindly Supported by:
Preface and Acknowledgments
Contents
Chapter 1: The Rise of e-Commerce Platforms in the Parcel Delivery Markets
1 Introduction
2 The Boom in e-Commerce: e-Retailers, Global and Local Marketplaces
3 Different Delivery Markets’ Configurations across Europe
4 Case Studies
4.1 Italy
4.2 The UK
4.3 The Netherlands
4.4 Poland
5 Conclusion
References
Chapter 2: Parcel Locker Stations: The Future of e-Commerce Delivery?
1 Introduction
2 Country Cases
2.1 Estonia: Competition Between Three Closed APM Networks
2.2 Finland – Posti Have Boosted the Number and the Usage of Parcel Locker Stations Within Five Years
2.3 Denmark – The Largest Carrier-Agnostic Network of Parcel Locker Stations in Europe
2.4 Poland – InPost Operates the Largest Number of Parcel Locker Stations in Europe
2.5 Germany – Still Low But Growing Usage of Parcel Locker Stations by German Online Shoppers
3 Parcel Locker Networks Are Operated by Various Types of Organizations
4 Most Parcel Locker Networks Are Exclusively Used by the Operator
5 Conclusions
References
Chapter 3: Regulation: Quo Vadis? Revisited
1 Introduction
2 Evaluation of the Postal Services Directive 2020–2021
3 What Exactly Are Postal Services?
3.1 PSD Provisions
3.2 CJEU Decisions
3.3 The Unanswered Question
3.4 Quo Vadis?
4 Is There a Distinct Market for Postal Services?
5 The Regulatory Framework and Its Future Scope
5.1 Authorization Procedures
5.2 Universal Service Provision
5.3 Universal Service Obligations
5.4 Financing the Universal Service
5.5 The Scope of the Revised Regulation
5.6 Subsidiarity/Flexibility
6 Conclusions
References
Chapter 4: “Is Postal Service a Natural Monopoly?”: A 30-Year Retrospective on Panzar’s Seminal Paper
1 Introduction
2 Panzar’s Seminal Paper and Reactions to It
3 How Has Last Mile Evolved in the US and Europe?
4 Is Postal Service Still a Natural Monopoly?
4.1 The Universal Service Dilemma
5 Conclusion
References
Chapter 5: The First Tests of the SGEI Framework in the Postal Sector: Takeaways from the Judgements in the Česká pošta and Post Danmark Cases
1 Introduction
2 The Preliminary Examination and the Pleas Against the Contested Decisions
3 The Legal Assessment
3.1 Notion of “Serious Difficulties” and Duration of the Investigation
3.2 Recourse to Additional Requirements
3.3 Efficiency Incentives vs Costs of an Efficient Service Provider
4 Economic Analysis
4.1 Credibility of the Counterfactual Scenario
4.2 Reliability of the USP’s Accounting System
4.3 Identification of the Relevant Intangible Benefits
4.4 Allocation of Proceeds from the Compensation to Items Other Than the USO
5 Conclusions
References
Chapter 6: Universal Service Vs. Targeted Measures towards Vulnerable People: How to Address Postal Users’ Needs?
1 Introduction
2 Vulnerability and Vulnerable Users: Some Definitions and Quantification
2.1 A Concept Hard to Define
2.2 The Most Common Types of Vulnerability
2.3 Examples of Measures Aiming to Protect Vulnerable Users in Utilities
3 Should We Replace the Universality Principle by Specific Measures Targeting Vulnerable Users in the Postal Sector?
3.1 Targeted Measures Generally Fail to Meet Their Targets
3.2 Affordability Is Not a Real Issue in the Postal Sector and the Implementation of “Social Tariffs” Would Not Be Justified
3.3 Accessibility to Postal Services in Rural Areas Is Presumably Less Critical than Access to More Vital Services
3.4 Restricting the Scope of the Universal Service to Vulnerable Users Will Not Significantly Reduce Its Cost
3.5 Relaxing Some Obligations While Preserving the Universal Dimension of Postal SIEG Would Be Probably More Efficient
4 Conclusion
References
Chapter 7: Retention Ratios in Retail Networks and Their Application to Post Offices
1 Introduction
2 Review of the Literature and Definition of the Retention Ratio
3 Ranges for Retention Ratios for Financial Transactions in Post Offices
4 Validation with Swiss Data
5 Summary and Conclusions
References
Chapter 8: Access Regimes in the European Postal Markets
1 Introduction
2 Access in a Postal Context
3 The European Union Debate on Postal Access
4 State of the Art in Five Large EU Postal Markets
4.1 France
4.2 Germany
4.3 Italy
4.4 The Netherlands
4.5 Spain
5 Lessons Learned and Policy Implications
6 Conclusion
References
Chapter 9: The Economic Implications of “Density-Based Rate Authority”
1 Introduction
2 Rationale and Theory of Rate Adjustments
3 The PRC’s Formula
4 Density Based Costs and the Scope of Natural Monopoly
5 Specific Formal Implications of Density-Based Rate Setting
5.1 The Form of the Cost Function
5.2 Average Cost Elasticity and Rate Adjustment
6 Implications for the Structure of Postal Pricing
7 Conclusion
References
Chapter 10: E-Commerce, Parcel Delivery and Environmental Policy
1 Introduction
2 The Model
2.1 Laissez-Faire
2.2 First-Best Allocation
2.3 Decentralization
2.3.1 Subsidizing Emission Reduction
2.3.2 Inefficiency of Uniform Quotas
3 Imperfect Competition
3.1 Independent Retailers and Delivery Operators
3.1.1 Equilibrium
3.1.2 Implementation of the FB
3.2 Integrated Firm I and Foreclosure
3.2.1 Stage 2
3.2.2 Stage 1
3.3 Implementation
4 Numerical Illustrations
4.1 The Specification
4.2 Illustrative Results
4.2.1 Example 1: Benchmark/Symmetric Scenario
4.2.2 Scenario 2: η1 = 0.8,,, η2 = 1
4.2.3 Scenario 3: θ1 = 1,,, θ2 = 0.1
4.2.4 Scenario 4: θ1 = 0.8,,, θ2 = 1
5 Conclusion
References
Chapter 11: Assessing Efficiencies and Benefits of “Sustainability Agreements” in the Postal Sector
1 Definitions
2 The Link Between Sustainability and Competition Law
2.1 In-Market Efficiencies
2.2 Out-of-Market Efficiencies
3 Examples of Sustainability Agreements in the Postal Sector
4 Methods to Quantify Sustainability Benefits
4.1 Revealed Preference Methods
4.2 Stated Preference Methods
4.3 Benefit Transfer from Related Cases
4.4 Valuation Derived from Implemented Economic Instruments, Stated Policy Objectives, and Estimations
4.5 Illustrative Application of the Quantification Methods
5 Conclusions
References
Chapter 12: The Effects of the Covid-19 Crisis on Postal Markets
1 Introduction
2 General Economic Impact of the Covid-19 Crisis
3 Overview of Postal Sector Data
4 Econometric Models to Assess Impact of Covid-19
5 What Would Have Happened Without Covid-19?
6 Conclusion
References
Chapter 13: Short and Longer-Term Impacts of the Covid-19 Pandemic on Postal Consumer Demands, Universal Service Providers and the Wider Postal Sector
1 Introduction and Background
1.1 Purpose and Methodology
2 Public Health and Social Responsibility
2.1 Short Term Societal Impacts
2.2 Short Term Postal Impacts
2.2.1 Demand Side
2.2.2 Supply Side
2.3 Longer Term Societal Impacts
2.4 Longer Term Postal Impacts
3 Shopping and Leisure
3.1 Short Term Societal Impacts
3.2 Short Term Postal Impacts
3.3 Longer Term Societal Impacts
3.3.1 “Home as a Hub”
3.4 Longer Term Postal Impacts
4 Business
4.1 Short Term Societal Impacts
4.2 Short Term Postal Impacts
4.3 Longer Term Societal Impacts
4.4 Longer Term Postal Impacts
5 Communicating
5.1 Short Term Societal Impacts and Postal Impacts
5.2 Longer Term Societal and Postal Impacts
6 Conclusion
Bibliography
Chapter 14: Covid-19 and Swiss Post: Volume Developments and the Economic Value of Postal Service, in the Pandemic and Beyond
1 Introduction
2 Literature Review
3 The Pandemic in Switzerland and its Effects on Postal Operations
3.1 The Course of the Pandemic in Switzerland
3.2 Parcel Volumes in the Course of the Pandemic
3.2.1 The Data: Looking Back and Forward
3.2.2 Operative Situation
3.3 Mail Volumes in the Course of the Pandemic
3.4 How Much Did the Pandemic Influence Volume Developments in 2020?
3.5 The Impact of Pandemic Periods on Volumes
4 Generating Wider Economic Value as an e-Commerce Enabler
4.1 Methodology
4.2 Shutdown I
4.3 Shutdown II
4.4 The Whole Pandemic
4.5 Impact of the Covid-19 Volume Effect
5 Shortcomings
6 Conclusion
References
Chapter 15: A Global Survey of Covid-19 Postal Regulatory Responses, to Appraise Short and Long-Term Impacts
1 Introduction and Method
1.1 Survey Methodology
2 The Covid-19 Impact on the Economy in Light of Postal Impacts Following Macroeconomic Shocks and Financial Downturns
2.1 GDP Trends Linked to Covid-19
2.2 Implications of Covid-19 and Major Macroeconomic Shocks on Postal Demand
3 The Role of the Post as an Essential Service
3.1 The Postal Network Proves to Be Vital Amidst Global Lockdowns
3.2 Introduction of New Essential Services Geared Towards Covid-19 Resilience
4 Revisions to Quality of Service
4.1 Key Statistics on Quality-of-Service Changes in 2020
5 State Funding to Support Postal Operations
5.1 Is the Legal Framework Underpinning the Postal Sector Resilient Enough?
6 Reported Emerging Policy and Regulation Developments in Response to Covid-19
7 Concluding Remarks
Appendix
Overview of the Questionnaire
References
Chapter 16: The Impact of the COVID-19 Pandemic on the Postal Market. Challenges and Opportunities for the Postal Regulatory Framework
1 Introduction
2 COVID-19 Pandemic Restrictions. An Overview
3 The Impact of the COVID -19 Pandemic on the Postal Market
4 Legal Restrictions Imposed on the Postal Sector
5 Conclusions
References
Chapter 17: Digital Exclusion and the Role of Posts Have to Play to Fight Against It
1 The Digital Divide: Definition and Roots
1.1 What Are we Talking About?
1.2 The Digital Divides in 2021
1.3 A Long-Lasting Issue Due to the Permanent Technological Progress?
2 The Costs and Consequences of Digital Divide
2.1 Less Opportunities and More Risks of Being Abused
2.2 Towards a Reinforcement of Social Inequalities?
3 Focus on the Covid-19 Pandemic and the Digital Divide: An Ambiguous Relationship
3.1 An Acceleration of Digital Usages and a Decrease in the Number of People Excluded From the Digital Society
3.2 A Smaller But Deeper Digital Divide
4 How to Bridge the Digital Divide?
4.1 Invest in a Reliable Infrastructure and Guarantee an Affordable Access to Internet
4.2 Identify and Train People Facing Digital Illiteracy
4.3 Thinking Upstream About Digital Tools and Applications: Inclusion by Design
5 What Could Be the Role of Postal Operators?
6 Conclusion
References
Chapter 18: The Response to Extensions of Vote-by-Mail and Early In-person Voting in the 2020 U.S. General Election
1 Introduction
2 A Model of the 2020 General Election
3 Notes on the Assembly of the Sample
4 The Estimates
5 Simulations of the Election
6 What Do the Simulations Show?
7 Conclusion
Appendix: Explanatory Variables of the Model
Section 1
Section 2
Section 3
References
Untitled
Chapter 19: Cost Allocation and Cooperative Game Theory
1 Introduction
2 Basics of Postal Costing
2.1 Characteristics of Postal Costs and Postal Regulatory Framework
2.1.1 Cost Characteristics of the Postal Service
2.1.2 Costs in the Postal Services Directive
2.2 Common Concepts and Allocation of Postal Costs
2.2.1 Useful Cost Concepts
2.2.2 Costs Accounting Approach for Regulated Firms
General Accounting Principles
Net Cost Evaluation of Meeting USO
3 Using Cooperative Game Theory for Postal Cost Allocation
3.1 Outline of Cooperative Game Theory
3.1.1 Framework of Cooperative Games
3.1.2 The Shapley Value and Its Axiomatization
3.2 How to Deal with Universal Service Obligations and More Generally Services of General Economic Interest
3.2.1 Back to the Cooperative Game Approach
3.2.2 Cooperative Games with a Permission Structure
4 Conclusion
References
Chapter 20: Demand Elasticities for Publishing Mail Traffic in the UK: Intensive and Extensive Margins
1 Introduction
2 Modelling Demand for Publishing Traffic
2.1 Price Elasticities
2.2 Selection and Endogeneity of Prices
2.3 Estimation Methods
3 Empirical Results
3.1 The Intensive Margin
3.2 The Extensive Margin
3.3 Testing for Selection Issues
3.4 Full Price Elasticities
4 Conclusions
Appendix
References
Chapter 21: The Temporal and Spatial Dynamics of the USPS’ Service Performance Scores Over the Period 2011–2020
1 Introduction
2 Adjusting the Aggregate Service Performance Scores for Spatial Dispersion
2.1 Background on Service Performance Measurement
2.2 A Composite Performance Scores Accounting for Spatial Dispersion
2.2.1 Reweighting the District-Specific Service-Performance Scores
2.2.2 The Mean-Variance Composite Score
3 An Econometric Model for the Dynamics of Service Performance
3.1 The Model
3.2 Variable Description and Model Estimation
4 Conclusion
References