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Reinventing the Postal Sector in an Electronic Age

Edited by the late Michael A. Crew, formerly CRRI Professor of Regulatory Economics and Director, Center for Research in Regulated Industries (CRRI), Rutgers Business School, Rutgers, The State University of New Jersey, Newark, US and the late Paul R. Kleindorfer, former Paul Dubrule Professor of Sustainable Development, INSEAD, France and Anheuser-Busch Professor Emeritus of Management Science, Wharton School, University of Pennsylvania, US
This compilation of original essays by an international cast of economists, regulators and industry practitioners analyzes some of the major issues now facing postal and delivery services throughout the world as competition from information and communication technologies has increased.
Extent: 392 pp
Hardback Price: $204.00 Web: $183.60
Publication Date: 2011
ISBN: 978 1 84980 360 1
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  • Economics and Finance
  • Economic Regulation and Governance
  • Public Sector Economics
This compilation of original essays by an international cast of economists, regulators and industry practitioners analyzes some of the major issues now facing postal and delivery services throughout the world as competition from information and communication technologies (ICT) has increased.

Competition has become increasingly important in the postal sector for some time in the form of alternative entrants providing mail delivery. However, the competition from ICT in the form of email and instant messaging, the Internet, Facebook and other forms of social networking and portable wireless devices such as the iPad and Kindle may be even more significant. Mail volumes are falling and the economies of scale that have made possible daily deliveries to every address are being eroded. This book assesses volume these declines resulting from this so-called ‘eSubstituion’ and looks at the ways the postal sector can adapt to the rapid changes resulting from ICT. The impact of electronic invoicing on transactions mail, and the impact on bulk mail of electronic forms of advertising are examined. Strategies, including pricing and access policies, are discussed in the context of the increasing impact of ICT. A rethinking of the role of mail in an electronic age is taking place and this book provides the cutting-edge of this rethinking and the attempts of POs to reinvent themselves while continuing to meet the public’s expectation of continuing ubiquitous daily deliveries of traditional mail products.

Undergraduate and postgraduate students and researchers in regulation, competition law, innovation and public sector economics along with institutional libraries and industry professionals will find this volume informative and useful.
Contributors: A.M. Amaral, J. Ansón, D. Bailly, F. Boldron, C. Borsenberger, I. Carslake, C. Cazals, M. Cherry, V.V. Comandini, H. Cremer, M.A. Crew, M. Davies, P. De Donder, H. Dietl, P. Dudley, R. Eccles, K. Elkelä, F. Fève, M.D. Field, J.-P. Florens, F. Flórez Duncan, D. Geradin, G. Houpis, C. Jaag, D. Joram, P.R. Kleindorfer, M. Koller, M. Lang, A. Lawrence, D.M. Levy, D. Longman, M. Lutzenberger, M. Maegli, L. Mautino, F. Mazzarella, M. Meidinger, M. Meschi, N. Nieto, H. Nikali, C. Pace, C. Panet-Amaro, E.S. Pearsall, M. Petrova, A. Pimenta, M.J. Ravnitzky, F. Rodriguez, B. Roy, R. Sheldon, S. Soteri, K. Strange, C. Strobel, W. Takis, J. Toledano, U. Trinkner, C.L. Trozzo, C. Valognes, L. Veruete-McKay, T. Walsh
Contents:

Preface

1. Competitive Strategies under FMO and Intermodal Competition
Michael A. Crew and Paul R. Kleindorfer

2. Invoicing in 16 European Countries
Kari Elkelä

3. Does the Level of Price Elasticity Change with the Progression of Substitution?
Heikki Nikali

4. Understanding the Impact of E-Substitution on Letter Mail Volumes: A Multi-Country Panel Study
Meloria Meschi, Matthew Cherry, Carla Pace and Milena Petrova

5. The Future of the Portuguese Postal Sector and the Role of CTT
Alberto Pimenta and António Manuel Amaral

6. Optimal Pricing for Mail and Welfare Implications in a Communications Market
Philippe De Donder, Helmuth Cremer, Paul Dudley and Frank Rodriguez

7. UK Letter Mail Demand: A Content-based Time-series Analysis Using Overlapping Market Survey Statistical Techniques
Catherine Cazals, Jean-Pierre Florens, Leticia Veruete-McKay, Frank Rodriguez and Soterios Soteri

8. Postal Markets and Electronic Substitution: Implications for Regulatory Practices and Institutions in Europe
Martin Maegli, Christian Jaag, Martin Koller and Urs Trinkner

9. How Many Outlets if the USP Does Not Face Any USO? A Cross-country Comparison
Claire Borsenberger, Denis Joram and Bernard Roy

10. Costing the Universal Service: Evaluating the Demand Response
Isabelle Carslake, George Houpis and Christian Strobel

11. State Funding and Cost Sharing of the USO Under the 2008 EU Postal Services Directive
Richard Eccles

12. Econometric Models and the Evolution of the French Post Office Network
François Boldron, Frédérique Fève, Jean-Pierre Florens, Clémence Panet-Amaro and Christophe Valognes

13. Evaluating the Demand Effects of Reductions in the Frequency of Delivery Service
Edward S. Pearsall and Charles L. Trozzo

14. The UK Service Obligation: What Do the Public Think and How Do They Value It?
Rob Sheldon and Alison Lawrence

15. Assessing Anti-Competitive Behavior in a Postal Market
Mary Davies

16. Price Discrimination in the Postal Sector and Competition Law
Damien Geradin

17. Price Discrimination and Price Differentiation Within Direct Mail
Felipe Flórez Duncan, Dawn Longman, Leonardo Mautino and Paul Dudley

18. The Economics of Postal Payment Channels and EU Postal VAT
Tim Walsh

19. Impact of VAT Exemptions in the Postal Sector on Competition and Welfare
Helmut Dietl, Christian Jaag, Markus Lang, Martin Lutzenberger and Urs Trinkner

20. Competition and Regulation in the Italian Postal Market
Vincenzo Visco Comandini and Francesca Mazzarella

21. Strategic Responses to Recession: A Comparison of the United States Postal Service to Leading Companies
Norma Nieto, Keith Strange and William Takis

22. The United States Postal Service Business Model: Lessons from the American Railroad Industry?
David M. Levy and Matthew D. Field

23. Financial Inclusion and Postal Banking: Is the Survival of Posts Also There?
José Ansón and Joёlle Toledano

24. The Dual Trend Towards Operational Efficiencies and Social Regulation in European Postal Services
Dominique Bailly and Margaux Meidinger

25. Sustainable Growth and the Postal Sector: Universal Service versus Environmental Protection
François Boldron, Claire Borsenberger, Helmuth Cremer, Philippe De Donder, Denis Joram and Bernard Roy

26. Offering Sensor Network Services Using the Postal Delivery Vehicle Fleet
Michael J. Ravnitzky