Topics in Regulatory Economics and Policy. Series editor Michael A. Crew, Newark, NJ, USA

Transcription

1 Topics in Regulatory Economics and Policy Series editor Michael A. Crew, Newark, NJ, USA

2 More information about this series at

3 Michael Crew Pier Luigi Parcu Timothy Brennan Editors The Changing Postal and Delivery Sector Towards A Renaissance 123

4 Editors Michael Crew Rutgers Business School-Newark and New Brunswick Newark, NJ USA Timothy Brennan School of Public Policy University of Maryland, Baltimore County Baltimore, MD USA Pier Luigi Parcu Florence School of Regulation European University Institute San Domenico di Fiesole, Firenze Italy Topics in Regulatory Economics and Policy ISBN ISBN (ebook) DOI / Library of Congress Control Number: Springer International Publishing Switzerland 2017 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

5 Preface This book is a result of the 24th Conference on Postal and Delivery Economics, which was held May 18 21, 2016 at the Robert Schuman Centre for Advanced Studies of the European University Institute in Florence, Italy. The conference was a joint effort of the Florence School of Regulation Communications and Media (FSR C&M) at the European University Institute and the Center for Research in Regulated Industries (CRRI) at the Rutgers Business School. It is now more than a quarter century that this conference has been held. Indeed, the conference followed all the crucial steps of the evolution in the postal sector, which is now impacted by the digital revolution. Perhaps the major theme that emerged was the impact of the Internet and the resulting electronic competition on the postal sector. Key topics for discussion were, and are, the market change and new users priorities, the impact on regulatory and competition dynamics and the re-thinking of the Universal Service Obligation. The conference was made possible by the contribution of generous supporters. We would like to thank them not only for financial support. In addition, they provided helpful advice in their role on the organizing committee as well as, along with others, intellectual contributions, advice and encouragement: Mohammad Adra, Bruno Basalisco, Jody Berenblatt, Claire Borsenberger, Fabio Camerano, Steven Cape, Isabelle Carslake, Beverly Collins, João Confraria, Margaret Cigno, Peter Dunn, Colm Farrelly, Charles Fattore, Stefano Gori, Andrea Grillo, Robert Hammond, John Hearn, Paul Hodgson, George Hoopis, Adam Houck, Christian Jaag, Denis Joram, Patrick Keating, Keith Kellison, George Kuehnbaum, Martin Maegli, Meloria Meschi, Henrik Ballebye Okholm, Ted Pearsall, José María Rodríguez, Chris Rowsell, Jim Sauber, Michael Scanlon, Gennaro Scarfiglieri, Soterios Soteri, Nancy Sparks, David Stubbs, Mark van der Horst, Tim Walsh, and David Williams. This year s conference benefited greatly from the efforts of the Conferences Unit of the Robert Schuman Centre for Advanced Studies and of the team of the FSR C&M, who were incredibly helpful during the Conference, enabling it to operate it very smoothly. They and colleagues provided both advice and assistance on numerous occasions and contributed greatly to the success of the event. v

6 vi Preface We would like to thank our distinguished dinner speaker, the President of AGCOM (the Italian National Regulatory Authority) and 2017 Chair of ERGP (European Regulators Group for Postal Services), Angelo Marcello Cardani. In his speech he focused on the impact of the digital revolution on the postal sector and the challenges it triggers and, also comparing it with other industries, he underlined the need to transform these challenges in opportunities. In addition, we thank all authors and participants of the conference. Absent their contributions, the conference and this book would not have been possible. The usual disclaimers are applicable. In particular, the views expressed reflect the views of the authors and are not necessarily those of the editors or sponsors. Newark, NJ, USA San Domenico di Fiesole, Italy Baltimore, MD, USA Michael Crew Pier Luigi Parcu Timothy Brennan

7 The Conference was kindly supported by: Royal Mail R.R. Donnelley Logistics United Parcel Service Pitney Bowes Ofcom Citizen Advice Poste Italiane La Poste Copenhagen Economics Swisspost FedEx Canadian Union of Postal Workers IBM Global Business Services GrayHair Advisors FTI Consulting ComReg Frontier Economics National Association of Letter Carriers Cullen International K&L Gates LLP New Zealand Post Limited An Post Swiss Economics vii

8 In memory of Prof. Michael A. Crew, On September 26, 2016, Michael A. Crew died peacefully at his home after a short illness, at age 74. Michael was Professor of Regulatory Economics and Director of the Center for Research in Regulated Industries (CRRI), Rutgers, The State University of New Jersey, Newark, USA. He was the founder of the series of international Conferences on Postal and Delivery Economics and co-editor of over twenty books based on proceedings from these Conferences, including this book. This book is dedicated to his memory. Michael was born in England during World War 2. He was educated at Dudley Grammar School and the Universities of Birmingham and Bradford, where he received his PhD in Between 1964 and 1977 Michael held academic appointments in Economics and Business Studies at various British Universities and the London Graduate School of Business Studies. He was a visiting Faculty Member at Harvard University during the summer of In January 1977 Michael moved to the USA to take up a post as Associate Professor of Business Administration at Rutgers University. In July 1984 he founded and was appointed Director of the Center for Research in Regulated Industries at the Rutgers Business School. In 1988 he founded the Journal of Regulatory Economics and was its editor until his untimely death. Michael s main interests were regulatory economics, peak-load pricing, and the theory of monopoly. His legacy includes a multitude of published works about public utilities and postal services, including well over 40 books, as editor or author, numerous professional papers, book reviews and testimony before the US Congress. The late Paul R. Kleindorfer 1 was both a close friend and an academic collaborator. One of their first joint works was a professional paper A Note on Peak Loads and Non-Uniform Costs published in the Economic Journal, June Subsequently they worked together on the Center for Research in Regulated 1 Former Paul Dubrule Professor of Sustainable Development, INSEAD, Fontainebleau, France and Anheuser-Busch Professor Emeritus of Management Science, The Wharton School, University of Pennsylvania, USA ix

9 x In memory of Prof. Michael A. Crew, Industries program on Postal and Delivery Economics. This included conferences and corresponding edited volumes of proceedings. The first Conference was held at Coton House, Rugby, England from July 22 to 25, The partnership continued for more than 40 years until Paul Kleindorfer s sad and untimely death on August 24, Their collaboration was focused on academic work of the highest standard, the edited volumes of Conference proceedings, 20 volumes in all, and the Handbook of Worldwide Postal Reform 2. Following Paul s death, Michael worked with Professor Timothy J. Brennan, University of Maryland Baltimore County, and Professor Pier Luigi Parcu of the European University Institute at Florence to ensure the continuance of the Postal and Delivery Economics Conferences, and the edited volumes of proceedings. But the practical organization of the conferences, including sponsorship, selection of venues, and the minutiae of tasks necessary for a successful Conference, depended on Michael s exceptional organizational skills. Following his retirement as the CRRI Distinguished Professor of Regulatory Economics at Rutgers Business School in 2015, Michael continued his interest in regulatory reform and the postal sector. At the 24th Annual Conference this year in Florence, Michael presented the case for reform of the US Postal Accountability and Enhancement Act of 2006 in a paper co-authored with Timothy J. Brennan, which is featured in Chap. 1 of this book. Michael was a family man who dotted on his five grandchildren. He will be deeply missed by his wife, Hilary, and his children, Sarah and Nicholas, his grandchildren and all who knew him. He was also a supporter of the philanthropic work of The Seeing Eye to enhance the independence, dignity, and self-confidence of blind people through the use of Seeing Eye dogs. Michael continued to work, including his duties as editor of this book, almost until his dying day. We are all privileged to have known Michael. John Hearn 2 Edward Elgar The Handbook, and many of the chapters, also involved collaboration with James I. Campbell Jr.

10 Contents The Postal Accountability and Enhancement Act After 10 Years Some Proposals for Reform... 1 Michael Crew and Timothy Brennan Lessons from the Postal Sector to Telecommunications and Vice Versa Pier Luigi Parcu and Virginia Silvestri E-Substitution and the Demand for Business Mail in the UK: Trends and Prospects Frank Rodriguez, Soterios Soteri and Stefan Tobias An Examination of the Links Between Postal Price Constraints, Efficiency, Competition and Public Welfare Philippe De Donder, Frank Rodriguez and Soterios Soteri The Personalization and Volume Trade-Off: A Future Without Saturation Mail? Michael D. Bradley and Adam C. Houck An Economic Perspective on Terminal Dues Henrik Ballebye Okholm, Bruno Basalisco, Jimmy Gårdebrink and Anna Möller Boivie A Case Study of Density of Retail Outlets in Portugal: Regulation and Politics in Postal Markets João Confraria, Vítor Miguel Ribeiro, Agostinho Franco and Frederico Pereira Minimum Wages in the Award of Public Contracts After RegioPost Alessandra Fratini Protecting Consumers Using Postal and E-Commerce Delivery Services in Competitive European Markets John Hearn xi

11 xii Contents E-Commerce in Europe: Parcel Delivery Prices in a Digital Single Market J. Scott Marcus and Georgios Petropoulos U.S. Postal Markets and Delivery Liberalization: A Simulation Approach Margaret M. Cigno and Edward S. Pearsall The Sharing Economy and the Uberization Phenomenon: What Impacts on the Economy in General and for the Delivery Operators in Particular? Claire Borsenberger Blockchain Technology and Cryptocurrencies: Opportunities for Postal Financial Services Christian Jaag and Christian Bach Digital Identities: A Good Move for Postal Operators Claire Borsenberger, Olaf Klargaard and Philippe Régnard The Digital Future of the Printed Publishing Material and the Impact on the Postal Sector Simona Romito and Stefano Gori Econometric Benchmarking of Delivery and Processing Costs in the UK Postal Sector Helen Ferguson, Katie Curry and Nick Convery Changes to the Universal Service: Influencing Factors, Impacts and Regulatory Implications Steven Cape and Philip Groves Mail Composition and Recipients Reaction to Direct Mail Thomas Geissmann, Christian Jaag, Martin Maegli and Urs Trinkner The Total Price of Mail: A Consumer Perspective Benjamin Gough, Kirk Kaneer and Margaret M. Cigno The Challenge of Designing Access to the Postal Network: An Economics Perspective Henrik Ballebye Okholm, Bruno Basalisco, Julia Wahl and Mindaugas Cerpickis Should the Postal Sector Change Its Social Model to Succeed in Its Transformation? Dominique Bailly and Margaux Meidinger Is the Universal Postal Union Still Relevant? Emmanuel Vivet and Roland Leray