Topics in Regulatory Economics and Policy Pier Luigi Parcu Timothy Brennan Victor Glass Editors The Contribution of the Postal and Delivery Sector Between E-Commerce and E-Substitution Topics in Regulatory Economics and Policy Serieseditor MichaelA.Crew,Newark,NJ,USA Moreinformationaboutthisseriesathttp://www.springer.com/series/6646 Pier Luigi Parcu (cid:129) Timothy Brennan (cid:129) Victor Glass Editors The Contribution of the Postal and Delivery Sector Between E-Commerce and E-Substitution Editors PierLuigiParcu TimothyBrennan EuropeanUniversityInstitute SchoolofPublicPolicy RSCAS,FlorenceSchoolofRegulation UMBC Communication&Media Baltimore,MD,USA Florence,Italy VictorGlass RutgersBusinessSchool Newark,NJ,USA TopicsinRegulatoryEconomicsandPolicy ISBN978-3-319-70671-9 ISBN978-3-319-70672-6 (eBook) https://doi.org/10.1007/978-3-319-70672-6 LibraryofCongressControlNumber: 2017963777 ©SpringerInternationalPublishingAG2018 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof 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 dissimilarmethodologynowknownorhereafterdeveloped. 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Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringerInternationalPublishingAG Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland Preface and Acknowledgments This book is a result of the 25th Conference on Postal and Delivery Economics, which was held on May 24–27, 2017, in Barcelona, Spain. The conference was a joint effort of the Florence School of Regulation – Communications and Media (FSRC&M)attheEuropeanUniversityInstitute(EUI)andtheCenterforResearch inRegulatedIndustries(CRRI)attheRutgersBusinessSchool. The conference and book are dedicated to Prof. Michael A. Crew. This 25th conference was the first held without him since he and the late Paul Kleindorfer organized the first conference, held in July 1990 in Rugby, England. Since then, hundreds of participants have come together to discuss and share research on evolving trends in postal and delivery economics. The community of economics, business,law,andpolicyresearchersstudyingthepostalsectorthattheconferences have fostered in the last three decades would not exist without Michael’s effort, intellect,humor,andindomitablespirit.Thatcommunitywillbeforeverinhisdebt. TheConferencesonPostalandDeliveryEconomicsthatMichaelcreatedarea testament tothe evolution inthe postal and delivery sector over the last 25 years: fromhighlettervolumestoaprogressiveincreaseofparceldelivery,fromthestart of the liberalization process to the disruptive impact of digitalization and the Internet,and fromsector-specific activitiestonewbusiness differentiation.At the sametime,theuniversalserviceobligationwasandstillisacentralelementofthe regulatory,policy,andeconomicdebate. The conference was made possible by the contribution of generous supporters. Wewouldliketothankthemnotonlyforfinancialsupportbutalsoforthehelpful advice they provided in their role on the organizing committee as well as, along with others, intellectual contributions and encouragement: Mohammad Adra, Bruno Basalisco, Geoff Bickerton, Claire Borsenberger, Stephen Brogan, Fabio Camerano,IsabelleCarslake,MargaretCigno,PeterDunn,CristinaFalcone,Colm Farrelly, Charles Fattore, Beatriz Galva´n Santiago, Stefano Gori, Juan Gradolph, Annegret Groebel, Robert Hammond, John Hearn, Paul Hodgson, Adam Houck, George Houpis, Christian Jaag, Denis Joram, Keith Kellison, Caroline Longman, LeonardoMautino,HendrikOkholm,TedPearsall,PaolaPiscioneri,MichelaRaco, v vi PrefaceandAcknowledgments Frank Rodr´ıguez, Chris Rowsell, Michael Scanlon, Soterios Soteri, Katherine Steinhoff,DavidStubbs,MarkvanderHorst,andTimWalsh. Thisyear’sconferencebenefitedgreatlyfromtheeffortsoftheConferenceUnit 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 verysmoothly,withspecialthankstoPaulaGoriandElisabettaSpagnoli.Theyand colleagues provided both advice and assistance on numerous occasions and con- tributedgreatlytothesuccessoftheevent. We would like to thank our distinguished dinner speaker, the President of CNMC(theSpanishNationalRegulatoryAuthority),Jose´ Mar´ıaMar´ınQuemada. Last but not least, we thank all authors and participants of the conference. Without 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 supporters. Florence,Italy PierLuigiParcu Baltimore,MD,USA TimothyBrennan Newark,NJ,USA VictorGlass The Conference was kindly supported by RoyalMail RRDonnelleyLogistics UnitedParcelService Ofcom CitizenAdvice PitneyBowes PosteItaliane LeGroupeLaPoste CNMC CopenhagenEconomics CorreosyTele´grafos IBMGlobalBusinessServices Oxera ComReg FrontierEconomics CullenInternational K&LGatesLLP AnPost NewZealandPostLimited BNetzA SwissEconomics vii Contents AcademicHubsandtheIntellectualInfrastructure ofEconomicRegulation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 WilliamE.Kovacic OnSomeHistoricalContributionsofthePostal andDeliveryConference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 PierLuigiParcuandVincenzoViscoComandini MichaelCrew’s(andPaulKleindorfer’s)Scholarly ContributionstotheCRRIPostalConferences,1990–2012. . . . . . . . . . 31 TimothyJ.Brennan DHLExpress(Austria):TowardsLegalCertaintyonArticle9 andApplicableObligationsforPostalServiceProviders. . . . . . . . . . . . 47 AlessandraFratini QuantityRebateScheme:Applicabilityof“persender” ReasoningforCorporateGroups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 TilRozman Regulation.QuoVadis?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 JohnHearn PAEA’sTakeonRegulatoryEconomics. . . . . . . . . . . . . . . . . . . . . . . . 89 EdwardS.Pearsall AreEuropeanCross-BorderParcelDeliveryServicesAffordable?. . . . 103 ClaireBorsenberger The2016EuropeanCommissionProposalforaRegulation onCross-BorderParcels:AnAssessmentoftheObjectives, Background,IssuesandPotentialImpacts. . . . . . . . . . . . . . . . . . . . . . . 115 PhilipGroves ix x Contents E-commerceofGoods:TestingtheEuropeanSingleMarket. . . . . . . . . 129 PaulaGoriandVirginiaSilvestri HowE-commerceIsShapingaNewConsumer-FocusedRegulatory FrameworkfortheEuropeanParcelDeliveryMarket. . . . . . . . . . . . . . 145 VirginieAlloo LifeAfterVolumeDeclines:IsThereaViableFuture forthePostalSector?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 AdamC.Houck AnalysisoftheEffectofManagementQualityVariables inDeliveryCostFunctions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 CatherineCazals,ThierryMagnac,andSoteriosSoteri PostalUsers’NeedsRegardingAccessibilitytothePostalNetwork. . . . 187 Jo~aoConfraria,FilipaSilva,FredericoPereira,andAgostinhoFranco KillYourDarlings:WhenDoesSacrificingNext-DayDelivery HelpUSOSustainability?. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . 207 HenrikBallebyeOkholm,MindaugasCerpickis,AnnaM€ollerBoivie, andBrunoBasalisco ThePricingofCross-BorderParcelDeliveryServices. . . . . . . . . . . . . . 223 ClaireBorsenberger,LisaChever,HelmuthCremer,DenisJoram, andJean-MarieLozachmeur PricingandEfficiencyDecisionsforLetterandParcel MarketsWhenIndustrialRelationsMatter. . . . . . . . . . . . . . . . . . . . . . 241 PhilippeDeDonder,FrankRodriguez,andSoteriosSoteri TheImpactofCompetitiononConsumerPricesforCross-Border Parcels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 SonjaThieleandAlexKaleviDieke AdjustingRatesforQualityofService:HaveMarket-Dominant MailRatesRisenFasterthantheCPI-U?. . . . . . . . . . . . . . . . . . . . . . . 271 EdwardS.Pearsall SimulatingCostEffectiveParcelDeliveryMethods forPostalServices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 MichaelD.Bradley,JeffColvin,andMaryK.Perkins PriceElasticitiesandFactorsDrivingInternationalContract ExportMailSentfromtheUKtoWesternEuropeanCountries. . . . . . 299 FrederiqueFeve,ThierryMagnac,SoteriosSoteri, andLeticiaVeruete-McKay AnExplorationoftheImpactofParcelVolumeGrowth ontheServicePerformanceofLetterMail. . . . . . . . . . . . . . . . . . . . . . 311 MargaretCignoandSoiliouD.Namoro