USO Net Costs and Economies of Scope Between Letters and Parcels

Ramon Gmür (), Felix Gottschalk (), Matthias Hafner () and Urs Trinkner ()
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Ramon Gmür: Swiss Economics and University of Zurich
Felix Gottschalk: Swiss Post Ltd.
Matthias Hafner: Swiss Economics and University of Zurich
Urs Trinkner: Swiss Economics and University of Zurich

A chapter in Postal Strategies in a Digital and Green Transition, 2026, pp 101-119 from Springer

Abstract: Abstract We present quantitative evidence for substantial economies of scope between letters and parcels in rural areas. The presence of economies of scope indicates that it is cost-efficient to distribute letters and parcels with the same carrier rather than having two independent delivery organizations for them separately. In the context of USO net costs calculations and operational business decisions with shrinking letter volumes and growing parcel volumes, it is important to accurately account for such economies of scope. More explicitly, considering economies of scope will likely decrease estimated USO net costs and, depending on volume conditions, USO constraints and regional characteristics, render the joint delivery of letters and parcels more attractive.

Keywords: Universal service obligation; Net cost compensation; Economies of scope (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:topchp:978-3-032-00502-1_8

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DOI: 10.1007/978-3-032-00502-1_8

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