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Estimating the Financial Impact of Discontinuing Saturday Delivery of Letters and Flats in the U.S

In: Postal and Delivery Innovation in the Digital Economy

Author

Listed:
  • Matthew H. Robinson

    (U.S. Postal Regulatory Commission)

  • J. P. Klingenberg

    (U.S. Postal Regulatory Commission)

  • Andreas Haller

    (Swiss Economics and University of Zurich)

  • Urs Trinkner

    (Swiss Economics and University of Zurich)

Abstract

In 2013, the U.S. Postal Service (USPS) announced plans to discontinue the delivery of letters and flats on Saturdays, while continuing parcels delivery (“plan 5+”). This would lead to sharply reduced street times on Saturdays, and to a shift of workload from Saturdays to other weekdays, in particular Mondays. Understanding the net effects of modified delivery schedules and reduced delivery frequency concerns an increasing number of postal operators worldwide. This contribution may hence shed some light on the issue optimizing delivery frequency as a response to declining letter volumes.

Suggested Citation

  • Matthew H. Robinson & J. P. Klingenberg & Andreas Haller & Urs Trinkner, 2015. "Estimating the Financial Impact of Discontinuing Saturday Delivery of Letters and Flats in the U.S," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Timothy J. Brennan (ed.), Postal and Delivery Innovation in the Digital Economy, edition 127, pages 155-168, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-12874-0_12
    DOI: 10.1007/978-3-319-12874-0_12
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    References listed on IDEAS

    as
    1. C. Jaag & U. Trinkner & J. Lisle & N. Waghe & E. Van Der Merwe, 2011. "Practical Approaches to USO Costing and Financing," Competition and Regulation in Network Industries, Intersentia, vol. 12(2), pages 108-130, June.
    2. Urs Trinkner & Bernd Holznagel & Christian Jaag & Helmut Dietl & Haller Andreas, 2012. "Möglichkeiten eines gemeinsam definierten Universaldienst Post und Telekommunikation aus ökonomischer und juristischer Sicht," Studies and Reports, Swiss Economics, pages 1-79, September.
    3. Panzar, John C., 2000. "A methodology for measuring the costs of universal service obligations," Information Economics and Policy, Elsevier, vol. 12(3), pages 211-220, September.
    4. Urs Trinkner & Andreas Haller, 2014. "Impact of Discontinuance of Saturday Delivery for Letters and Flats," Studies and Reports, Swiss Economics, pages 1-65, February.
    5. Andreas Haller & Christian Jaag & Urs Trinkner, 2014. "Calculating the net cost of home delivery obligations," Chapters, in: Michael A. Crew & Timothy J. J. Brennan (ed.), The Role of the Postal and Delivery Sector in a Digital Age, chapter 17, pages 227-239, Edward Elgar Publishing.
    6. Andreas Haller & Christian Jaag & Urs Trinkner, 2013. "Calculating the net cost of home delivery," Working Papers 0041, Swiss Economics.
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    More about this item

    Keywords

    Short Path; Access Time; Demand Response; Delivery Cost; Load Time;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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