Table Of ContentCompetitive Transformation of the
Postal and Delivery Sector
Topics in Regulatory Economics and Policy Series
Michael A. Crew, Editor
Center for Research in Regulated Industries
Graduate School of Management, Rutgers University
Newark, New Jersey, U.S.A.
Previously published books in the series:
Young, W.:
Atomic Energy Costing
Crew, M.:
Regulation Under Increasing Competition
Crew, M.A. and Kleindorfer, P. R.:
Emerging Competition in Postal and Delivery Services
Cherry, B.A.:
The Crisis in Telecommunications Carrier Liability:
Historical Regulatory Flaws and Recommended Reform
Loomis, D.G. and Taylor, L. D.:
The Future of the Telecommunications Industry:
Forecasting and Demand Analysis
Alleman, J. and Noam, E.:
The New Investment Theory of Real Options and its
Implications for Telecommunications Economics
Crew, M. and Kleindorfer, P. R:
Current Directions in Postal Reform
Faruqui, A. and Eakin, K.
Pricing in Competitive Electricity Markets
Lehman, D. E. and Weisman, D. L.
The Telecommunications Act of 1996: The "Costs" of Managed Competition
Crew, Michael A.
Expanding Competition in Regulated Industries
Crew, M. A. and Kleindorfer, P. R.:
Future Directions in Postal Reform
Loomis, D.G. and Taylor, L.D.
Forecasting the Internet: Understanding the Explosive Growth of Data
Crew, M. A. and Schuh, J. C.
Markets, Pricing, and Deregulation of Utilities
Crew, M.A. and Kleindorfer, P.R.
Postal and Delivery Services: Pricing, Productivity, Regulation and Strategy
Faruqui, A. and Eakin, K.
Electricity Pridng in Transition
Lehr, W. H. and Pupillo, L. M.
Cyber Policy and Economics in an Internet Age
Crew, M. A. and Kleindorfer, P. R.
Postal and Delivery Services: Delivering on Competition
Grace, M. F., Klein, R. W., Kleindorfer, P. R, and Murray, M. R.
Catastrophe Insurance: Consumer Demand, Markets and Regulation
Competitive Transformation
of the Postal and Delivery
Sector
edited by
Michael A. Crew
Center for Research in Regulated Industries
Graduate School of Management
Rutgers University
Newark, New Jersey, U.S.A.
and
Paul R. Kleindorfer
Risk Management and Decision Process Center
The Wharton School
University of Pennsylvania
Philadelphia, Pennsylvania, U.S.A.
Springer Science+Business Media, LLC
Library of Congress Cataloging-in-Publication
Competitive Transformation of the Postal and Delivery Sector
editors, Michael A. Crew and Paul R. Kleindorf er
ISBN 978-1-4613-4718-7 ISBN 978-1-4419-8915-4 (eBook)
DOI 10.1007/978-1-4419-8915-4
Copyright ®2004 by Springer Science+Business Media New York
Originally published by Kluwer Academic Publishers in 2004
Softcover reprint of the hardcover 1st edition 2004
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, electronic, mechanical, photo-copying,
microfilming, recording, or otherwise, without the prior written permission of the
publisher, with the exception of any material supplied specifically for the purpose of being
entered and executed on a computer system, for exclusive use by the purchaser of the
work.
Printed on acid-free paper.
CONTENTS
Authors vii
~oo~n ~
Preface and Acknowledgements xi
Access and FinancialViability
usa
1. Accessandthe forLettersandParcels 3
MichaelA. Crew and Paul R.Kleindorfer
2. Accessand(Non-)UniformPricinginthePostalSector 43
Etienne Billettede Villemeur, Helmuth Cremer, BernardRoy
andJoelle Toledano
3. AccessPricingandtheUniformTariffinthePostalSector 69
PhilippeDe Donder, Helmuth Cremer, and FrankRodriguez
4. IsMandatoryAccessinthePostalSectortheKeytoSuccess? 87
Nick van der Lijn andArno Meijer
5. FinancialViabilityoftheUniversalPostalServiceProviderUnder 105
UniformandCost-RelatedTariffs
Gonzalesd'Alcantara and BernardAmerlynck
6. AnEmpiricalAnalysisoftheGraveyardSpiral 121
RobertCohen,MatthewRobinson,Renee Sheehy,
John Waller andSpyrosXenakis
7. RPI- XPriceControl RegulationinthePostalSector 143
Luis Correia daSilva, Paul Dudley, LeonardoMautino,
andSophieRichard
8. Testing forAnti-CompetitiveBehaviorinPublicEnterprises 165
MichaelD.Bradley,JeffColvin,and Mary Perkins
9. AnEvaluationofUSPSWorksharing:PostalRevenuesand 185
CostsFromWorksharedActivities
John Haldi and WilliamJ. Olson
vi CONTENTS
National and International Perspectives
10. TheWTa Doha DevelopmentAgenda: Defining theScope 199
ofPostalService Liberalization
AnthonyAlvernoandAllisonLevy
usa
11. ALicensetoMail:Balancing the andCompetitive 223
ServicesGlobally
Ralph Carter, RutgerGoethart, CeciliaKindstrand,
AnnetteMeijer, andMarkvan der Horst
12. International Postal Arrangements, Trade, andCompetition Law 241
GregHarfordand WendyEitan
usa usa
13. ABriefSurvey ofthe andProspects foraGlobal 259
PekkaLeskinen
14. AProduction Model ofService QualityatAnPost 269
GregorySwinand
15. EvolutionandAnalysis oftheMarketStructure ofPostal 287
Services inSpain
AlvaroEscribano, Patricia Gonzalez,andJulioLasheras
16. Regulating Access to PostalNetworks intheEuropean Union 311
TheRolesofAntitrust and SectorSpecific Regulation
JuanJ Montero
Modernizing the P.O.
17. Developing Policies fortheFutureoftheUnited States 335
Postal Service
MichaelA. CrewandPaulR.Kleindorfer
18. Enhancing Postal Performance Through Improved Labor- 357
Management Relations:Customer Connect asaCaseStudy
Anthony Vegliante, John Mularski, James Sauber,
DavidTreworgy, andJarretJackson
19. PricingInnovation foraTransitioning PostalAdministration 373
MohammadAdra,AliAyub, Charles Crum,andMichaelPlunkett
AUTHORS
MohammadAdra, Economist,Office ofInspector General, USPS
Gonzales d'Alcantara,DePost/ LaPoste
AnthonyAlverno, Attorney, USPS
BernardAmerlynck, DePost/ LaPoste
AliAyub, Economist,Pricing Strategy, USPS
EtienneBillettede Villemeur, Associate Professor, IDEI, University of
Toulouse
MichaelD.Bradley, ProfessorofEconomics, George Washington
University
Ralph Carter, European Express Association
Robert Cohen, Director,Rates Analysis & Planning, U.S.Postal Rate
Commission
JeffColvin, Manager ofCost Attribution, USPS
Luis Correia daSilva, Director ofOXERA
Helmuth Cremer,ProfessorofEconomics,GREMAQ and IDEI, University
ofToulouse
MichaelA.Crew,ProfessorofEconomics andDirector-Centerfor
Research andRegulatedIndustries, Rutgers Business School, Rutgers
University
Charles Crum, Economist, Pricing Strategy, USPS
PaulDudley, HeadofRegulatory Economic Analysis,RoyalMail
PhilippeDe Donder, ProfessorofEconomics, IDEI,University ofToulouse
Wendy Eitan, Manager, International Relations, Israel PostalAuthority
Alvaro Escribano,ProfessorofApplied Economics, Universidad Carlos III
de Madrid, GeorgetownUniversity
Rutger Goethart, European Express Association
Patricia Gonzalez, Laboratorio deRegulacion Postal, Universidad Carlos
IIIde Madrid
John Haldi, President, Haldi Associates, Inc.
Greg Harford,Manager, InternationalRelations, NewZealand Post Limited
JarretJackson,Consultant,IBMBusiness Consulting Services
Cecilia Kindstrand, European Express Association
VIII AUTHORS
PaulR. Kleindorfer, Anheuser-BuschProfessorofManagementScience
andEconomics,Wharton School, University ofPennsylvania
Julio Lasheras, Correos yTelegrafos S.A.Estatal
PekkaLeskinen, General Counsel, Legal Affairs,Finland Post Corporation
Allison Levy, International PostalAffairs, USPS
Leonardo Mautino, Senior Consultant, OXERA
AnnetteMeijer, EuropeanExpress Association
Arno Meijer, Macro &SectorPolicies, ECORYS-NEI
JuanJ. Montero,ProfessorofCommercial Law, Universidad Nacional de
Educaci6n aDistancia
John Mularski,Manager, Staffing & Field Policy, USPS
WilliamJ.Olson,William1.Olson, P.c., Attorneys atLaw
MaryPerkins, Graduate Associate Professor, Department ofEconomics,
Howard University
MichaelPlunkett,Manager,Pricing Strategy, USPS
SophieRichard,Senior Economist, Royal Mail
MatthewRobinson, Postal Rateand ClassificationSpecialist, U.S.Postal
RateCommission
FrankRodriguez, Head ofEconomics, Royal Mail
BernardRoy, Head- DepartmentofRegulatoryEconomics,LaPoste
James Sauber,Research Director, National Association ofLetter Carriers
ReneeSheehy,Analyst, U.S.Postal Rate Commission
GregorySwinand,Senior Consultant, Regulatory Division, London
Economics
JoelleToledano, Director, European andNational Regulation, LaPoste
DavidTreworgy, Partner, IBM Business Consulting Services
Markvan derHorst, European Express Association
Nickvan der Lijn, ECORYS NEI
Anthony Vegliante, Vice President, Labor Relations, USPS
John Waller, Assistant Director, RatesAnalysis& Planning, U.S.Postal
RateCommission
SpyrosXenakis, Economist,U.S.Postal Rate Commission
SPONSORS
Rutgers University, Rutgers Business School,
CRRI-Center for Research in Regulated Industries
University of Pennsylvania, Wharton School,
Risk Management and Decision Processes Center
Deutsche Post World Net
Royal Mail
United States Postal Service
Canada Post Corporation
FedEx
La Poste
R.R. Donnelley & Sons Company
United Parcel Service
CTT Correios
IBM Business Consulting Services
Pitney Bowes
Postcomm (U.K. Postal Services Commission)
Siemens Dematic Postal Automation
United States Postal Rate Commission
x SPONSORS
Posten AB
Swiss Post
Finland Post Corporation
Anacom - Autoridade Nacional de Comunicacoes
Correos y Telegrafos
De Post - La Poste
Poste Italiane
TPG Post
Haldi Associates
An Post
Frontier Economics
Canadian Union of Postal Workers
National Association ofLetter Carriers
New Zealand Post
Sidley Austin Brown and Wood LLP
Association for Postal Commerce
Venable, Baetjer, Howard & Civiletti LLP
