Do opening hours and unobserved heterogeneity affect economies of scale and scope in postal outlets?
) Quaderni della facoltà di Scienze economiche dell’Università di Lugano from Biblioteca universitaria di Lugano (University Library of Lugano) Abstract: The purpose of this study is to analyze the cost structure of Swiss Post’s postal outlets. In particular, the idea is to assess economies of scale and scope in post offices and franchised postal agencies. Information on their optimal size and production structure is of importance from the policy-makers’point of view because this hypothetical situation may be a basis for calculation of reimbursements when providing the universal service. Two important novelties are introduced in this study. First, the latent class model accounts for postal outlets with different underlying production technologies, caused by unobserved factors. Second, the cost model includes standby time as an indicator of public service because regulated accessibility and negotiated opening hours that enhance public service frequently lead to opening hours that exceed
