Virtual currencies like Bitcoin are progressively gaining in popularity. However, limited availability still preempts their broad usage. Postal operators with their spatially comprehensive physical presence could play a key role in providing easy, quick and nationwide access to these alternative currencies. The postal network thus constitutes a natural bridge between the virtual and the physical worlds.

Christian Bach is a Project Manager with Swiss Economics and lectures at the EpiCenter, Maastricht University. He is an expert in game theory and works in network industries, regulation and on virtual currencies. After his studies of economics and philosophy, he received a Ph.D. in game theory from HEC Lausanne and Maastricht University. Christian Bach was a postdoctoral fellow at Maastricht University, and a visiting scholar at NYU Stern School of Business.

This article explores the complementary roles of price regulation and universal service regulation in network industries The analysis shows that current practices of costing and financing universal services may result in unintended market distortions. The article quantifies these effects and demonstrates how such distortions can be avoided.

To the article

E-commerce is an important growth area for postal operators. In its update, Swiss Economics analyzes and discusses the risks and opportunities associated with maintaining or even extending the regulation of e-commerce.

How to better measure consumer preferences in the postal market? How to set international parcel termination charges? What is the social cost of regulation in the postal sector? In the recently published book «Reforming the Postal Sector in the Face of Electronic Competition» by Prof. M. Crew and Prof. P. Kleindorfer, three papers by members of Swiss Economics have been included that address these questions.

Christian Jaag has given a presentation on the regulation of e-commerce at the 2nd European Postal Regulation Forum.

Urs Trinkner was asked by the 3rd IEEE Smart Grid World Forum to address the regulation of smart grids in an introduction and a panel discussion.

At the 5th Annual Competition and Regulation in Network Industries Conference in Brussels, Sonia Strube Martins presented a paper on Integrated timetables for railway passenger transport services.

At the 3rd Annual Trends in Innovation in the Postal Market Conference, Christian Jaag presented a new research paper on the interplay of universal service obligations and patents in network industries.

Swiss Economics contributed the following new research papers to the 20th Conference on Postal and Delivery Economics:

• Defining and Financing an Intermodal USO
• Competition and the Social Cost of Regulation in the Postal Sector
• Termination Charges in the International Parcel Market
• Measuring Consumer Preferences for Postal Services

All publications are available here.

After her studies in economics at the University of Münster Sonia Strube Martins received a doctoral degree in economics and worked as Senior Economist at Wissenschaftliches Institut für Infrastruktur- und Kommunikationsdienste in Bad Honnef. At Swiss Economics she works as a project manager with a focus on competitive analysis of markets, regulation in network industries and economic policy.

The convergence of physical letter mail and electronic substitutes challenges postal operators and the regulatory framework alike. In its update, Swiss Economics analyzes and discusses the economic context.

At the Post-Expo 2011, World Postal Business Forum Christian Jaag gave a presentation on «The role of the universal service obligation in postal competition».

The paper «What is an Unfair Burden? Compensating the Net Cost of Universal Service Provision» by Christian Jaag appeared in the Review of Network Economics. It discusses the net cost of universal service obligations and the potential burden they represent on the universal service provider. Specifically, it analyzes the situation in the postal sector after full liberalization.

The paper considers various interpretations of what an unfair burden might be and discusses the competitive impact of corresponding compensation scenarios by means of a stylized theoretical model with endogenous entry and coverage decisions.

To the paper

Swiss Economics contributed two presentations and papers to the 19th Conference on Postal and Delivery Economics:

«Defending Mail Markets against New Entrants»
To the slides

«Future of USO - Economic rationale for universal services and implications for a future-oriented definition of universal service obligations»
To the slides

Swiss Economics is looking for a passionate and exceptional economist with the capability to apply the most recent microeconomic concepts and to find pragmatic and robust solutions to complex problems. You are aiming at earning a doctorate to deepen your knowledge in industrial and regulatory economics and looking for an exciting career start opportunity in economic consultancy.

We are looking forward to receiving your CV and cover letter.