Public Reports

Economic Evaluation of temporary agency work

How do existing and potential regulations of temporary agency work affect individual stakeholder and the economy as a whole?

swissstaffing, the association of Swiss personnel service providers, currently sees the industry confronted with various regulatory challenges. Swiss Economics compiled a study for swissstaffing that shows the impact of existing and potential industry regulation on the labor market. The most important stakeholders were surveyed in order to examine the impact on society and the economy as a whole. The analysis scheme is based on the regulatory impact assessment.

 

Authors: Michael Funk, Seline Spillmann, Nicolas Oderbolz

 

to the Study (German)
to the Study (French)

Radar

Evaluation of Swisscom's owner strategy

Report commissioned by the Swiss Federal Department of Environment, Transport, Energy and Communications (DETEC)

Together with Arioli Law, Swiss Economics has evaluated the Confederation's ownership strategy for Swisscom. Among other things, we came to the conclusion that there is currently no sufficiently strong public interest in the Confederation holding a majority stake in Swisscom, either to ensure the universal service or to expand the high-bandwidth network. The majority of these services are provided in competition or can be adequately regulated by law. There may be a security policy interest in a majority shareholding if the necessary services cannot be adequately controlled by legislation and/or commercial contracts. Ultimately, a balance must be made between the public interest and a possible threat to competitive neutrality when retaining a majority shareholding.

 

Michael Funk, Urs Trinkner, Lukas Bruhin, Martina Arioli, Nicolas Oderbolz, Nina Schnyder

 

To the report (German)

To the accouncement of the Swiss federal council

Study on subject promotion

Study on behalf of the Swiss Real Estate Association VIS

Efficiency comparison of electricity distribution system operators in the fourth regulatory period (EVS4)

Report on behalf of Bundesnetzagentur

Together with SUMICSID and the IAEW, Swiss Economics conducted the efficiency comparison of German electricity distribution system operators in the fourth regulatory period. The focus was again on mapping the grid-side costs of integrating decentralized generation. The final report published by the Federal Network Agency (Bundesnetzagentur) covers all key methodological aspects and documents the results. The efficiency comparison compares around 200 German grid operators in terms of their cost efficiency.

To the study (German)

 

Stetoscopes

Flat rates for outpatient medical services

Report for santésuisse

At the end of 2023, two proposals for new tariff systems for Swiss outpatient medical services were submitted to the Federal Council for approval to replace the outdated TARMED. The aim of this report is to identify and assess the benefits of outpatient flat rates.

 

Authors: Urs Trinkner, Tobias Binz, Eva Zuberbühler, Seline Spillmann, Nicolas Oderbolz

 

To the study (German)
 

Power lines at sunrise

Need for Adjustment in WACC for Grid and Support Instruments for Renewables

Is there a need for adjustment in the methodology for determining the WACC (Weighted Average Cost of Capital) for Swiss grid operators? How should the WACC for renewables be set?

Unsere Empfehlungen für Anpassungen an der StromVV-Methodik für die Bestimmung des WACC Netz und Förderinstrumente  Erneuerbare umfassen die Aufhebung der Unter- und Obergrenzen für den risikolosen Zinssatz, die Einführung eines TMR-Ansatzes und die Einführung von Möglichkeiten zur Überprüfung, Veränderung und Korrektur der Peer Group. Zur Studie...

 

Autoren: Tobias Binz, Urs Trinkner, Romain de Luze, Leah Meyer, Elena Zarkovic, Michael Altorfer

Photovoltaic panels

Effect of price signals and regulations on electricity demand

Study for the State Secretariat for Economic Affairs (SECO)

Swiss Economics has carried out a comprehensive analysis of the electricity market as part of SECO's structural reporting. The analysis shows the extent to which electricity consumers react to price changes and how demand-side flexibility can be improved. The most important findings were published in an article in "Volkswirtschaft".

 

Authors: Nicolas Eschenbaum, Urs Trinkner, Lilia Habibulina, Maida Sabotic, Romain de Luze, Leah Meyer de Stadelhofen

 

To the study: SECO-Webpage (DE)
To the article: DE, FR

GasVG: Market Area Manager and Security of Supply Tasks

Study for the Swiss Federal Office of Energy (SFOE)

Swiss Economics supported the SFOE in its work on the new Gas Supply Act (GasVG). Against this background, a study was carried out to investigate whether the market area manager planned in the new law should take on new tasks in the area of security of supply and what consequences this would have for unbundling requirements, governance and capitalisation.

 

Authors: Urs Trinkner, Lukas Bruhin, Michael Funk,

Tobias Binz, Nicolas Oderbolz, Josef Winkler

Study (Deutsch)

Power transmission line from below

Relative Reference Network Analysis to Determine the Efficiency Values of German Transmission System Operators for the Fourth Regulatory Period (EFS4)

Expert report commissioned by the Federal Network Agency (Bundesnetzagentur)

The report documents the relative reference network analysis (RNA) conducted for the fourth regulatory period of the German transmission system operators (ÜNB).

To the study (Site of BNetzA)

 

Reversion of hydropower concessions

Background study for the AWEL of the canton of Zurich

In the comprehensive background report, the reversion strategies employed by the mountain cantons are outlined, detailing their respective advantages and disadvantages, along with the associated opportunities and risks for the canton of Zurich. The report also delves deeper into specific issues such as investment incentives and governance.

 

Authors: Urs Trinkner, Claudio Burkhard, Nicolas Eschenbaum, Leah Meyer de Stadelhofen

 

To the article

Reservoir with lots of blue water in the mountain area

Revenue opportunities and marketing costs of hydropower

Study on behalf of Swiss Federal Office of Energy (SFOE)

The report documents the results of a project to quantify the revenue potential of different types of hydropower plants.
hydropower plants. Based on a detailed revenue calculation of the various sales markets, heuristics are derived that the Swiss Federal Office of Energy can use in the future implementation of the "sliding market premium", a means to foster renewables in Switzerland.

 

Authors: Nicolas Greber, Alexander Fuchs, Nicolas Eschenbaum, Urs Trinkner

 

To the study (German): BFE-Webpage

Newspapers and a cup

Study about DLT and the Swiss IP ecosystem

Study for the Swiss Federal Institute of Intellectual Property (IPI).

Intellectual property, for example in the form of patents or copyrights, protects inventors from free riders and thus creates incentives to invest more in research and development and in creative works. IP is also relevant to the rapidly developing field of blockchain technology and applications. Through our study, the IPI wanted to better assess the current and, above all, the future demand for IP services. A similar country-specific study is currently being conducted in Singapore and will be published later.



Authors: Dr. Samuel Rutz, Matthias Hafner, Felix Wüthrich, Beatrix Marosvölgyi

 

You can find our study here.

Lines of code

Necessity and Key Elements of a Swiss Data and Digital Policy

Foundational Paper

The foundational paper on Swiss data and digital policy develops in a first step a terminology and conceptualisation of the topic grounded in economics. This is followed by a characterisation of digital markets and their regulation. The result is a framework for analysing the origins and effects of challenges in digital policy from an economic perspective. The framework is applied to the current political and regulatory initiatives in Switzerland and the EU. Recommendations are derived from this.

Authors: Lukas Bruhin, Nicolas Eschenbaum, Matthias Finger, Urs Trinkner

Newspapers and a cup

Regulatory Impact Assessment on the Introduction of Legal Protection for Journalistic Content on the Internet

Swiss Federal Institute of Intellectual Property (IPI)

In the context of the revision of the Swiss Copyright Act, Swiss Economics was commissioned by the Institute of Intellectual Property to conduct a Regulatory Impact Assessment (RIA) on the introduction of legal protection for journalistic services on the Internet.
Authors: Dr. Matteo Mattmann, Dr. Michael Funk, Dr. Samuel Rutz, Dr. Nicolas Eschenbaum, Beatrix Marosvölgyi

Economic and Social Significance of EVZ

Report on the Economic and Social Significance of EV Zug

Swiss Economics has written a report on the Economic and Social Significance of EV Zug

 

Authors: Michael Funk, Samuel Rutz, Andreas Stritt, Larissa Jenal, Luca Apreda

Aircraft in the air

Dublin Airport Cost of Capital for 2022 Interim Review

Report for the Commission for Aviation Regulation

This final report summarises our views on the efficient level of capital costs for Dublin Airport over the 2023-26 period. Our findings reflect that the aviation sector as well as financial markets are currently undergoing exceptional times following the pandemic and increased inflation.

 

Authors: Tobias Binz, Matteo Mattmann, Lilia Habibulina, Luca Apreda

Policy Measures against high Energy Prices

What measures against high energy prices have been introduced at EU level? Which of these would be suitable for Switzerland?

On behalf of the Swiss Federal Energy Office (BFE), Swiss Economics has conducted a study on potential measures by the federal government to address high electricity and gas prices.

 

Based on the report, the Federal Council decided on the next steps for Switzerland on December 21, 2022 (to the media news).

 

Authors: Urs Trinkner, Nicolas Eschenbaum, Romain de Luze, Luca Apreda, Nicolas Greber

Skyscrapers

Options for Insuring Against Terrorism and Pandemic Risks

How can the systemic risks of terrorism and pandemics be insured?

Systemic risks such as terrorism and pandemics can lead to substantial financial losses. At the same time, the limited insurability of systemic risks poses a major challenge for their coverage, with each type of risk having its own specific causes. Based on an analysis of these challenges and the instruments available to address them, various policy options are developed to improve the protection of German companies against the financial consequences of terrorism and pandemics. These options are evaluated according to the criteria of coverage scope, incentive effects, efficiency, and impact on the state budget.

 

Authors: Christian Hott, Ann-Kathrin Crede, Eva Zuberbühler, Samuel Rutz, Romain de Luze

 

The report was commissioned by the Federal Ministry of Finance (BMF). Here is the condensed version

Disinfectant and mask

Effectiveness of Corona measures in Switzerland

How effectiv were the measures taken by the Swiss government during the second Corona wave?

Non-pharmaceutical measures to contain the coronavirus, such as plant closures, are associated with high economic and social costs. On behalf of the Swiss State Secretariat of Economic Affairs SECO, Swiss Economics in collaboration with Prof. Dr. Mark Schelker (University of Fribourg) empirically investigated the impact of individual non-pharmaceutical measures on the course of the pandemic, measured by the number of hospitalizations, in Switzerland (to the study in German).

 

For the restriction and closure of restaurants and bars as well as the ban on large events, we find a robust negative - i.e. reducing - effect on the hospitalization rate. For other measures, no statements can be made on effectiveness due to the empirical starting point. However, it should not be concluded from this that these measures had no effect.

 

Press coverage e.g. NZZ, Watson (DE, FR), 10vor10, SRF (DE, FR).

Single wind turbine with flowers

Assessment of Grid Connection and Grid Connection Capacity in Austria

How is the grid connection assessment currently carried out by distribution system operators (DSOs)? Is there a need for harmonization?

Brief report commissioned by E-Control (detailed report not published

 

Authors: Urs Trinkner, Matteo Mattmann, Niklas Wehbring, Markus Stroot, Marian Meyer, Andreas Ulbig

Light bulb that represents ideas

Options for a Swiss Innovation Fund

How can a Swiss innovation fund be structured?

On behalf of the State Secretariat for Economic Affairs SECO, Swiss Economics has conducted a study with the University of St.Gallen to develop the basis for a Swiss innovation fund. The aim of such an innovation fund is to strengthen the Swiss financing ecosystem of start-ups during the growth phase.

 

The focus was on identifying international best practices and evaluating possible governance options for a Swiss innovation fund. Four ideal-typical models of an innovation fund for Switzerland were derived: Establishment, Special Law AG, Mandate and EIF. All four models come with advantages and disadvantages. Depending on political preferences, these can be assessed differently. The choice of a model should therefore begin with a definition of the objectives of a Swiss innovation fund ("form follows function").

 

On June 22, 2022, the Federal Council made a directional decision in favor of a Swiss innovation fund (to the press release).

 

Autoren: Urs Trinkner, Matteo Mattmann, Matthias Finger, Lukas Bruhin, Dietmar Grichnik, Michael Greger

Calculator

Regulation of debit and credit cards

Study for the Verband elektronischer Zahlungsverkehr

We assess whether regulatory interventions are required in the area of interchange fees for credit and debit cards, following the recent growth in market shares of the new generation of debit cards.

 

Authors: Samuel Rutz, Tobias Binz, Eva Zuberbühler, Larissa Jenal

Link to report on VEZ website

Operating theatre

Financial impact of the Corona pandemic on hospitals

What were the financial implications of the Corona pandemic for Swiss hospitals in 2020? What was the role of the Federal Council's ban on non-urgent interventions from March 16 to April 27, 2020?

Rough analyses of key financial figures indicate revenue increases of around CHF 100 million and cost increases of around CHF 700 million. Overall, the Corona pandemic reduced the profits of Swiss general hospitals by around CHF 600 million in 2020. The profit reductions cannot be solely attributed to the Federal Council's treatment ban. It is true that a sharp decline in treatments can be observed during the period of the ban. However, this was to a significant extent made up for in the following months. Moreover, due to behavioral adjustments of patients and hospitals, there would have been a substantial decline in the number of cases even without the ban. To the study [in German]...

 

Authors: Tobias Binz, Urs Trinkner, Andreas Haller, Eric Kammerlander

Chocolate euro

Regulatory Impact Assessment on cost targets

Regulatory Impact Assessment for the Federal Office of Public Health (BAG) and the State Secretariat for Economic Affairs (SECO)

The main idea of a cost target is to assign cost responsibility to the actors in the healthcare system. If additional revenues can no longer be generated simply by expanding volumes, efficiency reserves must be exploited. Unwanted consequences (e.g. a reduction in treatment quality) should be prevented by efficient design of the cost target and monitoring the development of costs and quality.

 

On November 10, 2021, the Federal Council adopted a cost target for the development of the costs of compulsory health insurance (OKP) as an indirect counter-proposal to the popular initiative "Für tiefere Prämien - Kostenbremse im Gesundheitswesen". Within the framework of a Regulatory Impact Assessment, Swiss Economics investigated the effects of such a cost target on health care actors and the costs of the health care system.

 

Authors: Samuel Rutz, Matteo Mattmann, Melanie Häner, Tilman Slembeck

 

Press release Federal Council

 

Study

Hydropower plant

Regulatory impact assessment on critical energy infrastructure

Regulatory impact assessment for the Swiss Federal Office of Energy

Swiss Economics was commissioned to conduct a regulatory impact assessment on a bill aiming to make Swiss critical infrastructure subject to the "Lex Koller". The law was originally put in place to limit foreign ownership of Swiss real estate.

 

Authors: Urs Trinkner, Samuel Rutz, Melanie Häner, Matteo Mattmann, Larissa Jenal

 

Study

Street in a town

Importance of Parking Spaces in City Centers

Meta-study for the Civil Engineering Office of Zurich (TAZ)

The meta-study examines the following questions: What are the effects of traffic calming and the upgrading of street spaces in city centers? What role do parking spaces play in this?

Cover of the study Effectiveness_and_Costs_Corona_measures

Effectiveness and costs of corona measures and optimal level of intervention

Study on the effectiveness of non-pharmaceutical measures for pandemic control

Swiss Economics has once again examined the effectiveness of non-pharmaceutical interventions ("NPI") to contain the coronavirus. This is an update of the meta-analysis on this topic commissioned by the State Secretariat for Economic Affairs (SECO) in June 2020. In addition to the question of the effectiveness of NPI, the study also evaluates the literature on the costs of individual measures and discusses the findings on factors such as the weather and the acceptance of NPI among the population. In the course of combating the pandemic, the question of the optimal level of intervention also arose in Switzerland. Another part of the study is dedicated to this question.

 

Authors: Samuel Rutz, Matteo Mattmann, Michael Funk and David Jeandupeux

To the study

Power transmission lines

WACC methodology for Swiss electricity TSOs and DSOs

Should the methodology for determining the WACC of Swiss electricity distribution and transmission system operators be amended in the light of historically low interest rates?

Network operators in the Swiss electricity market are compensated through cost-regulated network usage fees. The Electricity Supply Ordinance stipulates that an average capital cost rate (Weighted Average Cost of Capital, WACC) must be applied to the assets of the network operators necessary for operation. As part of this project, Swiss Economics analyzes the current methodology for calculating the WACC and prepares a report that describes how WACC calculations can be adjusted to current market conditions and market developments.  To the  study...

 

Authors: Tobias Binz, Urs Trinkner, Matteo Mattmann, Felix Wüthrich

Connected dots

Universal services and state-owned enterprises in Liechtenstein

Baseline study on universal services and public service provision for the Liechtestein Think Tank "Zukunft.li"

"Public Service: Less State - More Private" is the title of the latest publication from the Liechtenstein think tank "Zukunft.li". Swiss Economics has developed the scientific foundations for this publication. The first part provides the theoretical fundamentals of public service, describes organizational and financing models, and addresses the specific features of a small state. In the second part, the sectors of postal services, telecommunications, gas, electricity, and public transportation are examined individually. For each sector, three development scenarios are created, with the advantages and disadvantages weighed, and a corresponding conclusion is drawn.

 

Authors: Samuel Rutz, Urs Trinkner, Michael Funk und Melanie Häner

To the report

Coronavirus

Effectiveness of non-pharmaceutical measures to contain the spread of the coronavirus

Grundlagen für die Wirtschaftspolitik, No. 15, State Secretariat for Economic Affairs (SECO)

On 27 April 2020, two months after they were first introduced, the federal government started to relax the measures to contain the spread of the new coronavirus (SARS-CoV-2). As of early July, it cannot be ruled out that this easing will lead to a renewed increase of infection rates, or even a ‘second wave’ of infections. This Swiss Economics study provides an overview of available evidence on the effectiveness of various measures, and indicates which measures would be particularly appropriate to implement in case infection rates started to increase again.

 

Authors: Samuel Rutz, Matteo Mattmann, Ann-Kathrin Crede, Michael Funk, Anja Siffert and Melanie Häner

Read more

train

Factors influencing everyday mobility and travel

Research Project on behalf of SVI (Schweizerische Vereinigung der Verkehrsingenieure und Verkehrsexperten).

This research examines the interactions between everyday mobility and travel as well as between short and long-distance mobility in more detail. Its primary questions for investi-gation are:

  • Shifts over time between everyday mobility and travel and between short-distance and long-distance mobility;
  • Contribution to the overall mobility of different groups of people with different distance profiles in terms of everyday mobility and travel;
  • Personal characteristics, a person's mobility tools and their environment (e.g., place of residence, access to transport, or economic development) that are significantly con-nected to parameters of everyday mobility and travel;
  • Individual changes (e.g., change of place of work, relocation, marital status, or attitudes) that are significantly connected to parameters of everyday mobility and travel;
  • Significance for traffic as well as patterns of different forms of multi-local living arrange-ments in everyday mobility and travel.

 

Aircraft starting

Comparator Betas for French airports

Report on behalf of Autorité de régulation des transports

The Autorité de regulation des transports (ART) determines the appropriate level of remuneration for cost of equity, to which airports under its mandate are entitled for. The French transport law foresees that the Capital Asset Pricing Model (CAPM) is used to estimate airports’ cost of equity. A key component of the CAPM is the Beta, which measures the airport’s systematic risk (i.e. non-diversifiable risk).


Swiss Economics (2020) identifies groups of comparator airports, which can serve to determine the appropriate level of the Beta for each of the airports under ART’s mandate. In this report, we present our estimates of comparator airport Betas and describe our methodology for estimating them.


We use evidence from actual stock market data and regulatory precedent to determine comparator Betas.

  • We use stock return data for Fraport (Frankfurt), Aéroports de Paris (Group), Copenhagen, AENA Aeropuertos, and Zurich Airport to estimate empirical Asset Betas.
  • We use evidence from regulatory precedent for Amsterdam Schiphol Airport, Aeroporti di Roma, Dublin Airport, London Gatwick Airport, and London Heathrow Airport.

 

Authors: Urs Trinkner, Tobias Binz, Matteo Mattmann

Airport, Aircraft

Study on drivers of airport Beta risk

Report on behalf of Autorité de régulation des transports

The Autorité de regulation des transports (ART) determines the appropriate level of remuneration for cost on equity, to which airports under its mandate are entitled for. The French transport law foresees that the Capital Asset Pricing Model (CAPM) is used to estimate airports’ cost of equity. A key component of the CAPM is the Beta, which measures the airport’s systematic risk (i.e. non-diversifiable risk).

 

We assess the factors that drive differences in airports’ Beta risk using a framework that connects various degrees of systematic risk with microeconomic analysis of how demand shifts translate into profit variation. We find the following relevant factors:

 

  • Factors related to the regulatory regime under which an airport operates: We find traffic risk resulting from price cap rigidity to play the major role for explaining differences in Beta risk.
  • Factors related to an airport’s demand structure: We find differences in traffic mix to influence airports’ Beta risk. Specifically, we find airports’ Beta risk to increase with the share of traffic from Low Cost Carriers. In addition, we find that under certain conditions, competition reduces airports’ Beta risk.
  • Factors related to an airport’s supply structure: We find that capacity constraints reduce the systematic risk an airport is exposed to. Also, we find that airports with a higher degree of cost fixity are more exposed to systematic risk.

 

Authors: Urs Trinkner, Tobias Binz, Alec Rungger

Blizzards on the airfield

Dominance analysis for German gas transmission system operators

Expert report on behalf of Bundesnetzagentur

We discuss outlier procedures for identifying dominant units in applying data envelopment analysis (DEA) on behalf of the German regulator Bundesnetzagentur. In particular we discuss bootstrapping as opposed to the standard F-test.

Hydropower plant

Effects of climate change on Swiss infrastructures

Study on the significance of climate change for infrastructures in Switzerland commissioned by the Federal Department of the Environment, Transport, Energy and Communications (UVEK)

Within the framework of a literature overview, studies from Germany and abroad are evaluated from 2007 onwards. The additional damage is caused by creeping climate change and extreme events. In addition to the transport and energy sectors, water supply, industrial infrastructure, social infrastructure and tourism are also affected. Although climate change is more damaging than beneficial overall, it also has a positive impact. For example, there is less cold-related damage to roads and railways and expenditure on heating energy is falling. As temperatures rise, Switzerland's relative attractiveness as a summer tourist destination also increases. However, all available quantifications of the effects of climate change are still subject to considerable uncertainty.

Aircraft in the air

Dublin Airport Cost of Capital for 2019 Determination

Report for the Commission for Aviation Regulation

Our report reflects that financial markets are currently undergoing exceptional times. Real government bond yields have fallen to a historically low level in the past couple of years, suggesting that the real expected return from risk-free assets is currently negative. Traditional approaches to estimating the cost of capital may fail to adequately capture the peculiarities of this new market environment. Hence, we assessed whether the ECB’s recent halt of quantitative easing is likely to have a significant effect on the market and analysed whether financial markets expect bond yields to rise again in the near future. Also, we considered evidence that expectations on equity returns may be more stable over time than underlying risk premia, indicating a so called Total Market Return approach may be preferred over the traditional Equity Risk Premium approach to estimate the cost of equity.

 

Authors: Christian Jaag, Tobias Binz, Matteo Mattmann, Nina Schnyder, Urs Trinkner

The full report can be downloaded from the Commission for Aviation Regulation’s website.

Power lines at sunrise

Benchmarking of German Electricity Distribution System Operators

Report on behalf of Bundesnetzagentur

Swiss Economics has benchmarked about 200 German electricity distribution networks together with SUMICSID and IAEW on behalf of Bundesnetzagentur. The final report has been published by the agency and includes all relevant methodological aspects as well as results.

 

Authors: Trinkner Urs, Mattmann Matteo, Agrell Per, Bogetoft Peter, Moser Albert, Sieberichs Marius, Löhr Lukas

To the report

Airport, Aircraft

WACC determination of Swiss airports

Expert report on behalf of Zurich Airport

In November 2018, the Federal Office of Civil Aviation (FOCA) presented its proposal for a targeted revision of the Regulation on Airport Charges (FGV). In the report commissioned by Zurich Airport, we examine the rationale and appropriateness of the proposal regarding the suggested methodology for determining the regulatory capital cost rate.

Cars in a traffic jam

Shared Economy and Traffic in Switzerland

Research project for the Swiss Association of Transportation Engineers and Experts (SVI)

Authors: Lutzenberger Martin, Trinkner Urs, Federspiel Esther, Frölicher Jonas, Georgi Dominik, Ulrich Susanne, Wozniak Thomas

To the publication

Moss with power lines

Regulatory Systematics for the Fourth Regulatory Period for Electricity Distribution Network Operators (VNB Strom)

Expert report on behalf of the Austrian Economic Chamber (WKÖ)

Authors: Urs Trinkner, Martin Lutzenberger

Man and excavator

Cost Driver Analysis and Efficiency Comparison of Gas Transmission Network Operators – Report for the Third Regulatory Period

Report for Bundesnetzagentur

Authors: Urs Trinkner, Martin Lutzenberger, Andreas Haller, Per Agrell, Peter Bogetoft, Martin Ahlert, Peter Vossig

To the publication

Arbitration Hammer

Introduction of the SIEC-Tests: Impact on the Swiss fusion control

Study for the State Secretariat for Economic Affairs (SECO)

Swiss Economics, on behalf of the State Secretariat for Economic Affairs (SECO), conducted a study on the economic impacts of switching from the current dominance test in merger control to the SIEC test used in the EU. The study also explored whether the potential introduction of the SIEC test should be accompanied by further adjustments, such as in the areas of merger thresholds or review deadlines. To answer these questions, interviews were conducted with both domestic and international experts.

 

Authors: Christian Jaag, Samuel Rutz, Noëmi Jacober

To the publication

Gas pipeline

Comparison of Network Usage Fees - Analysis of the Factors Influencing Fees for Swiss and German Gas Networks

Report for Bundesamt für Energie (BFE) and Verband der Schweizerischen Gasindustrie (VSG)

Authors: Worm Heike, Trinkner Urs, Mollet Janick, Funk Michael, Vaterlaus Stephan, Hafner Matthias

To the publication

Hydropower plant

Dealing with existing power plants to ensure energy security in Switzerland

Study for Bundesamt für Energie (BFE)

Authors: Trinkner Urs, Thomas Geissmann, Ivo Scherrer, Kern Markus, Benedikt Pirker, Christian Nabe

Blizzards on the airfield

Unbundling of Swiss gas network operators

Study for Bundesamt für Energie (BFE)

The study examines the need for unbundling Swiss gas network operators and proposes less stringent unbundling requirements for the distribution network level than for the transmission network level. The strongest unbundling is suggested for the entity responsible for market area management.

 

Authors: Trinkner Urs, Funk Michael

Logistics

Benchmarking European Gas Transmission System Operators

Study for CEER (Council of European Energy Regulators)

Authors: Agrell Per J., Bogetoft Peter, Trinkner Urs

Prospective study on the future activities of the Quality of Service Fund 'QSF'

Study for the Universal Postal Union

Swiss Economics was commissioned by the Universal Postal Union (UPU) to conduct a prospective study on the future activities of its Quality of Service Fund (QSF). We recommend to extend the scope of the fund, to introduce complementary top down elements to propose global and regional projects, to foresee a new common account to fund such projects, and to provide balanced measures to ensure the use of funds and increases the measurability of projects.

 

Authors: Trinkner Urs, Jaag Christian, Lutzenberger Martin

Calculator

Determination of the financing cost rate 'WACC' for gas transmission system operators

Expert report for the Austrian Economic Chamber (WKÖ)

Authors: Trinkner Urs, Funk Michael

Impact of the initiative -Pro Service public

Study for Schweizerische Arbeitsgemeinschaft für die Berggebiete (SAB) and Schweizerischer Gemeindeverband (SGV)

Authors: Dietl Helmut, Jaag Christian, Trinkner Urs, Christian Bach, Michael Funk, Lutzenberger Martin, Jeffrey Yusof

Power admission lines in fog

Electricity Market Opening in the EU and Implications for Switzerland

Study for Dachverband Schweizer Verteilnetzbetreiber (DSV)

In light of the discussion surrounding the full electricity market opening in Switzerland, the question arises as to what extent Switzerland can draw on the experiences of the EU. An analysis of developments in the EU, along with country studies for the UK, Germany, France, Italy, and Switzerland, shows that, firstly, there is still no level playing field in the EU, that full market opening presents a significant challenge, and that there are important interactions with the energy transition. In the case of Switzerland, it can be assumed that full market opening will increase the costs of the energy strategy, ceteris paribus. Against this backdrop, Switzerland should first define the key parameters of its energy strategy and then derive an optimal market opening strategy for its electricity market

 

Authors: Trinkner Urs, Scherrer Ivo, Martin Irina

To the publication

Power transmission lines

Future energy markets and the role of network providers

Study for Bundesamt für Energie (BFE)

The study develops, analyzes, and evaluates various models of interaction between electricity markets and network constraints. In light of future challenges, a traffic light model is proposed, in which, during the yellow phase, a new market process is applied to account for network constraints.

 

Authors: Nabe Christian, Trinkner Urs, Bons Marian

Calculator

Benefits of Auditing

Study for Schweizerische Treuhandkammer

The benefit of auditing lies in the validation of company information. For a company’s stakeholders, information is crucial for their decision-making. However, information only becomes unequivocally valuable and useful to a stakeholder when it has either been produced by the stakeholder themselves or when it has been reviewed by an independent and qualified entity based on objective and standardized criteria. The auditing process provides this validation of valuable company information and reduces information deficiencies. The study is divided into three parts. In the first part, specific needs and deficiencies in company information from stakeholders are identified and assessed through expert interviews. Based on this, the second part evaluates to what extent auditing can reduce information deficiencies. In this context, auditing refers solely to the legally mandated external audit. The third part analyzes, based on established theories from economic literature, how the reduction of information deficiencies through auditing is beneficial for the overall economy.

 

Authors: Eberle Reto, Jaag Christian, Bach Christian, Martins Sonia Strube, Feger Fabian

To the publication

Power transmission lines in the fog

Efficiency comparison for electricity distribution network operators

Study for Bundesnetzagentur

Postman in snow

Impact of Discontinuance of Saturday Delivery for Letters and Flats

Study for the U.S. Postal Regulatory Commission

Delivery costs are the largest segment of total costs incurred by the United States Postal Service (USPS). These costs comprise 38 percent of total operating costs. Accurately assessing how unit delivery costs behave is crucial to properly attribute costs to products. This report presents the application of a model for estimating the relationship between the cost of city carrier delivery and the number of delivery points receiving mail, as well as the volume of mail to be delivered. This model uses data from the Postal Service that allow the identification of the geographic location of all delivery points served by each delivery route, the volume delivered on the route each day, and the time spent on the route by the carrier. The model simulates each route, determining the shortest linear distance to serve all delivery points receiving mail.

 

Authors: Trinkner Urs, Haller Andreas

To the publication

Impacts of the 1:12-Initiative

Study for the Swiss Union of small and medium sized enterprises

Authors: Jaag Christian, Keuschnigg Christian, Strube Martins Sonia, Parra Moyano Jose, Scherrer Ivo

To the publication

Mails

Possibilities of a jointly defined universal service for postal and telecommunications from an economic and legal perspective

Study on behalf of German Federal Parliament

Authors: Trinkner Urs, Holznagel Bernd, Jaag Christian, Dietl Helmut, Haller Andreas

To the publication

train

Long-term securing of integrated timetables

Study for the Austrian Federal Railways (ÖBB)

Rail passenger transport services with integrated regular interval timetables (IRIT), offer passengers a regular interval timetable for services on the railway network. IRIT have the potential to increase the quality and attractiveness of railway passenger services in comparison to other transport modes. This study summarizes the advantages and challenges of an implementation of IRIT for railway passenger services and derives the main requirements for the successful introduction of IRIT.

 

Authors: Finger Matthias, Kern Markus, Strube Martins Sonia, Trinkner Urs

To the publication

post box england

Study on Appropriate Methodologies to Better Measure Consumer Preferences for Postal Services

Study for the European Commission

This report summarises work undertaken testing the use of stated preference discrete choice experiments to measure consumer preferences for postal services. It discusses the importance of understanding and quantifying consumer priorities in the postal sector and presents different methods used for valuing non-market goods. We recommend the use of stated preference discrete choice experiments, and test the use of this approach in three member states. We provide the findings for these member states, as well as a tool kit for applying this methodology in other member states in future.

 

Authors: Rohr Charlene, Trinkner Urs, Lawrence Alison, Hunt Priscillia, Kim Chong Woo, Potoglou Dimitris, Sheldon Rob

To the publication

lots of parcels

International Parcels - Review of Inward Land Rates

Study for the Universal Postal Union

Authors: Trinkner Urs, Jaag Christian, Dietl Helmut, Haller Andreas, Verbeek Erwin, Fürst Oliver

To the publication

Cars in a traffic jam

Congestion costs: Jurisprudence in the light of economics

An economic analysis of traffic costs

Author: Jaag Christian

cargo train

Regulatory framework and compensation models in rail freight transport

Study for SBB Cargo

Authors: Trinkner Urs, Jaag Christian, Dietl Helmut

To Publication

Cables

Implementation options for an active public FTTH policy for Switzerland

Study for Sunrise

Authors: Jaag Christian, Trinkner Urs, Finger Matthias, Lang Markus, Lutzenberger Martin

To the publication

Aging, Social Security Systems, and Institutions

Study for the State Secretariat for Economic Affairs (SECO)

Authors: Jaag Christian, Keuschnigg Christian, Keuschnigg Mirela

To the publication

Arbitration Hammer

Determining the Regulatory Need from an Economic Perspective: Appropriateness and Consequences of Functional or Structural Separation of Swisscom

Study for Swisscom

The study analyzes the regulatory need of a functional or structural separation of the Swiss incumbent Swisscom.

 

Authors: Finger Matthias, Jaag Christian, Lang Markus, Lutzenberger Martin, Trinkner Urs

To the publication

Concept of a Homogeneous Calculation Model for Determining the Qualitative Benefits and Cost-effectiveness of E-Government Projects

Swiss Economics presents a concept for the evaluation of e-government projects

Authors: Finger Matthias, Horner Samuel, Jaag Christian, Lutzenberger Martin, Trinkner Urs

Package on the treadmill

Network Access in the Postal Market: Possibilities and Impacts

Study for Swiss Post

Authors: Jaag Christian, Trinkner Urs

To the publication

Research

Postman in snow

USO net costs and economies of scope between letters and parcels

Swiss Economics Working Paper, forthcoming in Topics in Regulatory Economics and Policy

We present quantitative evidence for substantial economies of scope between letters and parcels in rural areas. The presence of economies of scope indicates that it is cost-efficient to distribute letters and parcels with the same carrier rather than having two independent delivery organizations for them separately. In the context of USO net costs calculations and operational business decisions with shrinking letter volumes and growing parcel volumes, it is important to accurately account for such economies of scope. More explicitly, considering economies of scope will likely decrease estimated USO net costs and, depending on volume conditions, USO constraints and regional characteristics, render the joint delivery of letters and parcels more attractive.

 

Authors: Ramon Gmür, Felix Gottschalk, Matthias Hafner, Urs Trinkner

To the working paper on ResearchGate

Swiss DMA-Brussels-Effect?

Published on SSRN on 9th October 2024.

 

The Digital Markets Act (DMA) has introduced a plethora of new obligations for large digital platforms-so-called "gatekeepers"-in the European Union. While the DMA is not directly applicable in Switzerland, this paper reviews the Terms and Conditions of selected gatekeepers to assess whether and to what extent they nevertheless comply with DMA provisions also regarding Switzerland. Its findings contribute to the discourse not only on the Brussels Effect but also on how Switzerland should react to the DMA.

 

Authors: Peter Georg Picht, Luka Nenadic, Octavia Barnes, Nicolas Eschenbaum, Yannick Kuster

To the article

bank buildings

Softening the Blow: US State-Level Banking Deregulation and Sectoral Reallocation after the China Trade Shock

Published in the Journal of Political Economy Macroeconomics, Volume 2, Number 3, September 2024

US state-level banking deregulation during the 1980s facilitated the sectoral reallocation of labor after the China trade shock. Early-deregulated states were financially more integrated by the 1990s, allowing households to better smooth consumption by borrowing. This stabilized demand, kept the housing prices up, and thus facilitated sectoral reallocation of labor from import-exposed manufacturing sectors toward housing sector.

 

Authors: Lilia Habibulina, Mathias Hoffmann (Universität Zürich)

To the publication

Package on the treadmill

Entry in parcel markets: applying Fudenberg and Tirole’s taxonomy

Book chapter on the microeconomic foundation of different business strategies in parcel markets

We utilize standard economic models in which competing firms interact strategically to analyse the evolution of parcel markets after market liberalisation. Our starting point is a parcel market with an incumbent postal operator with a universal service obligation that faces market entry. The incumbent has various options for dealing with the threat of market entry or with market entry that has taken place. Depending on the entry cost, strategic interaction is better understood as quantity competition à la Cournot or price competition à la Bertrand.

 

In sparsely populated rural areas, fixed cost is high and capacity commitment is possible. Therefore, competition takes place in quantities, which are strategic substitutes, and the incumbent postal operator can in principle deter market entry. However, a vertically integrated firm with guaranteed high quantities (e.g., Amazon) or an established distribution infrastructure (e.g., a retailer) may still enter the market. In both cases, the universal service obligation induces the incumbent to overinvest in capacity and become a top dog, which is an optimal strategy.

 

In densely populated cities, in contrast, fixed cost is low and capacity commitment not credible. Firms therefore compete in prices, which are strategic complements. The universal service obligation prevents the incumbent postal operator to aggressively set low prices, and consequently, prevents it from detering entry. That is, the incumbent needs to accommodate the entrant. Since the universal service obligation already mitigates price competition it is ambiguous whether the incumbent postal operator invests to become a pacifistic fat cat.

 

Authors: Funk Michael, Gottschalk Felix, Zuberbühler Eva

 

Chapter in Service Challenges, Business Opportunities, and Regulatory Responses in the Postal Sector (2024). Parcu P., Brennan T., Glass V. (eds). Springer, Cham.

 

Presentation (31st Conference on Postal and Delivery Economics 2023)

Towards an Optimal Staking Design: Balancing Security, User Growth, and Token Appreciation

New publication on optimal staking designs in the ChainScience Conference Proceedings.

This paper examines the economic and security implications of Proof-of-Stake (POS) designs, providing a survey of POS design choices and their underlying economic principles in prominent POS-blockchains. The paper argues that POS-blockchains are essentially platforms that connect three groups of agents: users, validators, and investors. To meet the needs of these groups, blockchains must balance trade-offs between security, user adoption, and investment into the protocol.

The authors focus on the security aspect and identify two different strategies: increasing the quality of validators (static security) vs. increasing the quantity of stakes (dynamic security). They find, that the optimal staking design hinges upon a platform's specific objectives and its developmental stage. This research compels blockchain developers to meticulously assess the trade-offs outlined in this paper when developing their staking designs.

You can access the whole conference proceedings here.

 

Authors: Nicolas Oderbolz, Matthias Hafner, Beatrix Marosvölgyi

 

Laptop

Blockchain and it's application

Zentrum für Schweizerisches und Internationales Steuerrecht (zsis), 2/2023, S. 41-53

The blockchain technology was originally developed to create Bitcoin, a currency and payment system without intermediaries. Today, it is also being used in other areas. In light of the tax relevance of the topic, this article provides a brief overview of the functioning of different blockchains and their applications. Additionally, it explains the classification of crypto-assets by financial market authorities and the limitations of the technology.

 

The publication can be accessed here.

 

Authors: Dr. Christian Jaag und Matthias Hafner

banknotes

The Four Types of Stablecoins: A Comparative Analysis

Wolfram ChainScience Conference Proceedings [forthcoming]

Stablecoins have gained significant popularity recently, with a market capitalization of over 180 billion USD. However, recent events have raised concerns about their stability. In this paper, we classify stablecoins into four types based on the source and management of their collateral and examine the stability of each type under different conditions. We highlight the potential instabilities and underlying trade-offs of each type using agent-based simulations. The results emphasize the importance of carefully evaluating the source of a stablecoin's collateral and its collateral management mechanism to ensure stability and minimize risks. A deeper understanding of stablecoins should be of importance to regulators, policymakers, and investors alike.

 

The presentation can be accessed here.

 

Authors: Matthias Hafner, Marco Henriques Pereira, Helmut Dietl, and Juan Beccuti

Incentives of Compensating USO Net Costs

Book chapter in Postal Strategies (2023). Parcu P., Brennan T., Glass V. (eds). Springer, Cham.

The net costs are the difference in profits of a universal service provider with and without its universal service obligation and correspond to the required compensation in a competitive market. We show that such a compensation does not limit the incentives of the universal service provider for cost efficiency and growth.

 

Authors: Gottschalk Felix, Trinkner Urs, Zuberbühler Eva

To the book chapter

3 Cryptocurrency coins

DeFi Lending Platform Liquidity Risk: The Example of Folks Finance

The Journal of The British Blockchain Association, 6(1)

Decentralized financing platforms (DeFi) can be exposed to liquidity risk, which arises when users are unable to withdraw their assets. Researchers and practitioners have found that the concentration of deposits within a small group of users is one of the main drivers of liquidity risk. Typically, lending platforms experience high concentration at the beginning of their operations. As a result, they face a significant liquidity risk that has not been explored so far. This article addresses this gap by examining liquidity risk from the perspective of a new lending platform and describing the use case of Folks Finance. First, we describe the liquidity risk to which the lending protocol is exposed from the perspective of platform economics. Second, we theoretically evaluate the effectiveness of various measurement methods for liquidity risk. Third, we explore how a reward mechanism can reduce liquidity risk. We show that liquidity risk is more pronounced for a new lending platform than for an established protocol. Furthermore, we find that the Herfindahl-Hirschman Index (HHI) outperforms other liquidity risk measurement methods. Finally, we demonstrate that when rewards are sufficiently but not excessively high, a program that encourages depositors to lock their assets can reduce liquidity risk and promote liquidity build-up. From the case study, several conclusions can be drawn: First, new lending platforms should be particularly cautious in dealing with liquidity risks. Second, lending protocols should use the HHI instead of other concentration measures when calibrating their parameters. Third, rewards can be used to promote liquidity and incentivize liquidity readiness, but should not be overused.

 

The publication can be accessed here.

 

Authors: Nicolas Greber, Romain de Luze, Matthias Hafner, Juan Becutti (joint work with Folks Finance)

Postfiliale in Simplon

Retention Ratios in Retail Networks and Their Application to Post Offices

Book chapter in The Postal and Delivery Contribution in Hard Times (2023). Parcu P., Brennan T., Glass V. (eds). Springer, Cham.

Diversion ratios indicate the fraction of demand that is “diverted” to another company. By analogy, we define retention ratios as the fraction of demand of a particular store or product that is “retained” within a company. In case of a post office closure, retention ratios express how much of the sales in the closed post offices are retained in the remaining post offices. Both retention ratios and diversion ratios are, although defined differently, closely linked to elasticity of demand relative to changes in prices and/or quality. Despite its considerable importance, there is a lack of research on diversion and retention ratios in the postal sector. In our paper, we contribute to the literature in three ways. We provide a review of the relevant literature on diversion and retention ratios for post office and retail networks as well as in merger cases. We identify existing estimates and relevant factors that drive the results. We then qualitatively limit possible ranges of retention ratios of post office closures. We validate our results by comparing empirical volume effects in Swiss Post’s restructured retail network between 2013 and 2019.

 

Authors: Matthias Hafner, Lory Iunius, Urs Trinkner

Zum Buchbeitrag

Judge's hammer

Braucht die Schweiz ein Beihilferecht?

Article in the Swiss Journal of Competition Law

The "See Gaster" procedure was triggered by an ex-ante screening process developed by the Swiss Competition Commission (WEKO). In the conference contribution, Michael Funk discusses the strengths and weaknesses of screening procedures.

Postfiliale in Simplon

Net Costs of Universal Service Provision: Challenges for the Coming Decade

Book chapter in "The Economics of the Postal and Delivery Sector" (2022). Parcu P., Brennan T., Glass V. (eds). Springer, Cham.

The concept of net cost of the universal service obligation (USO) is based on the profit difference of the universal service provider (USP) with and without the USO. In recent times, USPs have been challenged with sharp declines of letter mail and transactions in post offices. As a result, net cost calculations may need to be adapted more regularly. Besides, USP undergo changes in regulation within and outside the scope of the USO, affecting the net cost of the USO. Based on Swiss data, we calulate the net costs of different USO dimensions and compare them with each other.

 

Autors: Gottschalk Felix, Hafner Matthias, Trinkner Urs

To the book chapter

Arbitration Hammer

25 Jahre Kartellgesetz – Preisabreden und Marktabschottungen

Article in the Jusletter of October 11, 2021

Price-fixing and market foreclosure are two core areas of Swiss antitrust law in which significant decisions have been made over the years and substantial fines have been imposed. These are also areas where interventions have become increasingly politically motivated, particularly in the fight against the "high-price island" Switzerland. Samuel Rutz and Monique Sturny take the reader on a brief journey through time, from the early days of cartels in Switzerland to the current state of the Cartel Act. The article concludes with an assessment and an outlook on emerging developments.

Airport from inside

How do firm and market characteristics affect airports' Beta risk?

Competition and Regulation in Network Industries. 2020;21(3):297-312

 

The article presents a graphical framework based on Subrahmanyam and Thomadakis (1980) that allows to study the impact from firm and market characteristics on systematic risk associated with the return on capital, i.e. Beta risk, for utilities under price control. Within this framework, Beta risk is driven by the magnitude of profit fluctuations following demand shocks.


The framework is then applied to airport firm characteristics and airport market environment features. I find that the frequency of price control resets, the level of operating leverage, the extent of capacity constraints, and the degree of market power all have an unambiguous effect on the level of Beta risk. The scope of the regulatory perimeter and the type of traffic mix may also affect Beta risk; however, the magnitude and direction of their impact rely on the specifics of the case.


The article may assist policy makers to formulate economically sound recommendations on how the regulatory rate of return for airport operators should be determined. Specifically, my findings suggest criteria that can be used to choose adequate peer companies of comparable systematic risk.

 

Authors:

Tobias Binz, Swiss Economics

 

Permanent link to published online version

Postman in snow

Funding the USO: Cross-Subsidization and Net Cost Balancing

Book chapter in "The Changing Postal Environment. Topics in Regulatory Economics and Policy." Parcu P., Brennan T., Glass V. (eds). Springer, Cham.

Incumbent operators providing universal services are increasingly active in competitive markets, which raise the issue of cross-subsidization. We analyze the competitive and welfare properties of the Swiss net cost balancing mechanism (NCB) applied since 2013 in the postal sector, and compare it to the traditional fully distributed cost approach based on activities. We find that NCB resolves the relevant competitive concerns while having superior welfare properties.

 

Authors: Haller Andreas, Jaag Christian, Trinkner Urs

To the book chapter

Arbitration Hammer

Passing on of cartel overcharges: why is it so difficult to formulate robust predictions?

Concurrences N°4-2019, pp. 50-58.

We introduce the reader to three stylized scenarios often referred to by practitioners when asked about the share of a cartel overcharge that was passed on from direct to indirect suppliers. We show how sensitive such predictions are with respect to many
of the underlying assumptions. Even slight deviations from standard assumptions may overturn predictions entirely. We conclude that a reliable estimate of the pass-on rate must always be informed by actual evidence – used either to complement theoretical models or as input for evidence-based models.

 

Authors:

Tobias Binz, Swiss Economics

Pierre Fleckinger, MINES ParisTech, Paris School of Economics

Christian Jaag, Swiss Economics

Constance Monnier, Université Paris, Panthéon Sorbonne

To the article

Clock at the train station

Institutional design of the Swiss rail market

Book chapter on improving the instiutional setting of the rail market in Switzerland.

 

Autors: Urs Trinkner, Martin Lutzenberger

Arbitration Hammer

Gefährdete Kohärenz im Kartellrecht

Zeitschrift für Immaterialgüter-, Informations- und Wettbewerbsrecht (sic!), 5/2019, S. 304-306

The Federal Court has recently significantly tightened the application of the cartel prohibition: price, quantity, and territorial agreements are de facto prohibited, regardless of their impact on competition. In the past, the Federal Court has shaped competition law with similarly far-reaching decisions. Today, mergers are hardly ever prohibited, and excessive prices are no longer sanctioned. The Federal Court’s case law threatens the coherence of the Cartel Act: while a "laissez-faire" approach is practiced in the areas of mergers and excessive prices, an extremely interventionist policy is pursued regarding agreements. As a result, companies are strongly incentivized to circumvent the strict cartel prohibition through mergers.

 

Authors: Michael Funk, Christian Jaag, Samuel Rutz

To the article

Lines of code

Die Bedeutung der Digitalisierung für das internationale Unternehmenssteuerrecht

Zeitschrift für internationales Steuerrecht, p. 66-83

Does digitalization require new rules for the international taxation of companies? The OECD and the EU aim to adjust international tax law in favor of market jurisdictions.

In the current issue of the Journal of European Law, Christian Jaag, together with Luzius Cavelti, has published a lead article on the topic “The Significance of Digitalization for International Corporate Tax Law.”

 

Authors: Luzius Cavelti, Christian Jaag

Calculator

The more economic approach to predatory pricing

Journal of Competition Law & Economics, Volume 14 (2), pp 292-310

The «more economic approach» was introduced to antitrust to achieve a more effect-based and theoretically grounded enforcement. However, related to predatory pricing it resulted in systematic over- and under-enforcement: Economic theory does not require dominance for predation to be a rational (and harmful) strategy, although an ex ante dominant firm would often refrain from predation. Hence, within the current legal framework which requires dominance for antitrust to apply, a more effect-based and theoretically grounded antitrust enforcement cannot pursue harmful predation. Therefore, we suggest separating predatory pricing from exclusionary abuse of a dominant firm, both legally and analytically. Instead, predatory pricing should be analyzed along the same logic as a merger. In particular, we argue that three elements from merger control should be adopted: in the absence of dominance, market share and/or turnover thresholds may serve as a de minimis rule; recoupment should be analyzed similar to the competitive effect of a merger between the predator and its prey; and a stronger efficiency defense should be established.

 

Authors: Michael Funk, Christian Jaag

To the published article
To the working paper

Bookshelf with books

Screening for Bid Rigging - Does it Work?

Journal of Competition Law & Economics, Volume 14 (2), pp 235-261

This paper proposes a method to detect bid rigging by applying mutually reinforcing screens to a road construction procurement dataset from Switzerland in which no prior information about collusion was available. The screening method is particularly suited to address the problem of partial collusion, that is, collusion that does not involve all firms and/or all contracts in a specific dataset, implying that many of the classical markers discussed in the corresponding literature will fail to identify bid rigging. In addition to presenting new screens for collusion, it is shown how benchmarks and the combination of different screens may be used to identify subsets of suspicious contracts and firms. The discussed screening method succeeds in isolating a group of suspicious – firms exhibiting the characteristics of a local bid-rigging cartel with cover bids and a – more or less pronounced – bid rotation scheme. Based on these findings, the Swiss Competition Commission (COMCO) opened an investigation and sanctioned the identified suspicious – firms for bid rigging in 2016.

 

Authors: Imhof David, Karagök Yavuz, Rutz Samuel

To the published article
To the working paper

Paradebeispiel für eine nutzlose Regulierung

An article for Finanz und Wirtschaft

In an article in Finanz und Wirtschaft, Samuel Rutz argues that the 2015 revision of the Consumer Credit Act has not achieved its objectives.

 

Author: Rutz Samuel

empty letter

Mail Composition and Recipients Reaction to Direct Mail

In: The Changing Postal and Delivery Sector. Edited by M. Crew, P.L. Parcu and T. Brennan, Springer, pp 271-28

Letter mail services have come under pressure from the emergence of electronic communication channels.

 

Authors: Geissmann Thomas, Jaag Christian, Maegli Martin, Trinkner Urs

To the publication

Postfiliale in Simplon

Postal Strategies in a Digital Age

In: The Future of the Postal Sector in a Digital World. Edited by M. Crew and T. Brennan, Springer, Chapter 8

Authors: Jaag Christian, Moyano Jose Parra, Trinkner Urs

To the publication

Relevanz der Revision - Studie zum Nutzen der Wirtschaftsprüfung in der Schweiz / Pertinence de la Révision - étude sur l'utilité de l'audit en Suisse

Der Schweizer Treuhänder 3/4-2015

Authors: Eberle Reto, Jaag Christian, Bach Christian

empty letter

Estimating the Financial Impact of Discontinuing Saturday Delivery of Letters and Flats in the United States

In: Postal and Delivery Innovation in the Digital Economy. Edited by M. Crew and T. Brennan, Springer, pp. 155-168

Authors: Robinson Matthew H., Klingenberg J.P., Haller Andreas, Trinkner Urs

To the publication

post box england

Market Regulations and USO in the Revised Swiss Postal Act: Provisions and Authorities

In: Postal and Delivery Innovation in the Digital Economy. Edited by M. Crew and T. Brennan, Springer, pp. 301-312

Authors: Jaag Christian, Maegli Martin

To the publication

empty letter

Postal Sector Policy: From Monopoly to Regulated Competition and Beyond

Utilities Policy 31, pp. 266-277

This paper discusses the main aspects of the competitive and regulatory state of the postal sector. It presents the different models for postal competition and regulation in the EU and the US and their history, together with their implications on regulation, with a focus on universal services and network access. While postal monopolies used to be the main source of funding for universal service obligations, the need for alternative funding sources after full liberalization has increased the interest of regulators and the public in knowing the cost of these obligations. In parallel, new means of electronic communication and consumer needs call the traditional scope of universal services into question. This paper outlines the economic rationale of current policies and directions for future postal regulation to strengthen the postal services' commercial viability in a competitive age, while safeguarding their relevant characteristics for the economy.

 

Author: Jaag Christian

To the publication

train

Integrated Timetables for Railway Passenger Transport Services

Competition and Regulation in Network Industries, 15(1), pp. 78 - 107

Rail passenger transport services with integrated regular interval timetables (IRIT) offer passengers a regular interval timetable for services on the railway network. IRIT have the potential to increase the quality and attractiveness of railway passenger services in comparison to other transport modes. This article summarizes the advantages and challenges of an implementation of IRIT for railway passenger services and derives the main requirements for the successful introduction of IRIT.

The comparison of the regulatory framework, the role of IRIT and the development of passenger railway services in CH, the NL and the UK, shows that in those countries, where either IRIT has been introduced (CH) or the high frequency of trains between cities provides for a system comparable to IRIT (NL), railway services play a more important role in the modal split. The successful introduction of IRIT requires a long-run implementation schedule which identifies the necessary investments in the railway infrastructure and points out the financial resources available to make those investments. Furthermore, IRIT requires a high level of punctuality of railway passenger services, the coordination between railway companies when designing the timetable and a priority rule for passenger railway services within IRIT when there are capacity restrictions on the railway network.

 

Authors: Finger Matthias, Haller Andreas, Strube Martins Sonia, Trinkner Urs

To the publication

empty letter

Regulation and the Burden of the Net Cost Resulting from Universal Service Obligations

In: The Role Of The Postal And Delivery Sector In A Digital Age. Edited by M. Crew and T. Brennan, Edward Elgar, pp. 204-213

Authors: Jaag Christian, Trinkner Urs and Uotila Topias

To the publication

empty letter

Calculating the Net Cost of Home Delivery Obligations

In: The Role Of The Postal And Delivery Sector In A Digital Age. Edited by M. Crew and T. Brennan, Edward Elgar, pp. 227-239

Authors: Haller Andreas, Jaag Christian and Trinkner Urs

To the publication

Aircraft in the air

E-Loyalty determinants and e-loyalty instruments for accommodation and flight services

In: Studien zur Freizeit- und Tourismusforschung. Hrsg: S. Kübelböck and F. Thiele, MetaGIS-Fachbuch, pp. 155-170

Authors: Liebrich Andreas, Lutzenberger Martin, Amstad Olivia

Price Regulation and the Financing of Universal Services in Network Industries

Review of Law and Economics 9(1), pp. 125-150

This article explores the complementary roles of price regulation and universal service regulation in network industries. It analyzes compensation for the universal service provider (USP) by public finances and a fund to which operators contribute. As long as the USP enjoys market power, price regulation may serve as a means to finance universal services. This implies allowing for price increases to compensate for the net cost of the universal service obligation. It releases competing operators or the general government budget from contributing to its financing but results in distorted pricing and reduced overall welfare due to inefficient entry. 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.

 

Author: Jaag Christian

To the publication

Mails

Competition and the social cost of regulation in the postal sector

In: Reforming the Postal Sector in the Face of Electronic Competition. Edited by M. Crew and P.R. Kleindorfer, Edward Elgar, pp. 294-305

Authors: Maegli Martin, Jaag Christian

To the publication

Package on the treadmill

Termination charges in the international parcel market

In: Reforming the Postal Sector in the Face of Electronic Competition. Edited by M. Crew and P.R. Kleindorfer, Edward Elgar, pp. 277-293

Authors: Haller Andreas, Jaag Christian, Trinkner Urs

To the publication

Envelopes

Measuring consumer preferences for postal services

In: Reforming the Postal Sector in the Face of Electronic Competition. Edited by M. Crew and P.R. Kleindorfer, Edward Elgar, pp. 241-26

Authors: Rohr Charlene, Trinkner Urs, Lawrence Alison, Kim Chong Woo, Potoglou Dimitris, Sheldon Rob

Tourists' understanding of sustainable tourism: An analysis in eight countries

In: GSTF Journal on Business Review, Vol. 2, No. 2, p. 219 - 224

The goal of this study is to learn more about tourists» understanding of sustainable tourism. The empirical survey with over 6,000 respondents in eight countries identifies the most relevant aspects of sustainable tourism from a tourists» perspective. Overall the perception is balanced over the different dimensions. Furthermore, five different types regarding tourists» understanding of sustainable tourism are identified in a cluster analysis and a potential market size of sustainable tourism of 22% of all tourists can be identified.

 

Authors: Wehrli Roger, Egli Hannes, Lutzenberger Martin, Pfister Dieter, Stettler Jürg

To the publication

empty letter

Defending Mail Markets Against New Entrants: An Application of the Defender Model

In: Multi-Modal Competition And The Future Of Mail. Edited by M. Crew and P.R. Kleindorfer, Edward Elgar, pp. 236-246

Authors: Jaag Christian, Dietl Helmut, Trinkner Urs, Fürst Oliver

To the publication

Anbieter gleich behandeln

Wirtschaftsdienst - Zeitschrift für Wirtschaftspolitik, 92(1), 4-5

Author: Trinkner Urs

Practical approaches to USO costing and financing

Competition and Regulation in Network Industries, 12(2), 108-129

Traditionally, universal services in network industries have relied on granting the universal service provider a reserved area. Current liberalization policies promoting competitive entry may put the traditional universal service and its financing at risk. Hence, there is an increased interest in estimating the cost of universal service provision.

In the postal sector, the Third EC Directive proposes a calculation approach to determine the net cost of a universal service obligation and to compensate the universal service provider (USP). In this paper, we discuss various implementations of the costing and financing of USO based on profitability cost and argue that a holistic approach is appropriate to meet the core requirements of consistency and robustness.

 

Authors: Jaag, Christian, Trinkner Urs, John Lisle, Navin Waghe, Erik Van Der Merwe

To the publication

post box england

The interaction between universal service costing and financing in the postal sector: a calibrated approach

Journal of Regulatory Economics 39(1), 89-110

The financing of universal service has traditionally relied on granting the universal service provider a reserved area. Together with growing electronic substitution, current liberalization policies promoting competitive entry may put the traditional universal service at risk. Hence, there is an increased interest in estimating the cost of universal service provision. The 3rd EC Postal Directive proposes a calculation approach to separately determine the net cost of a universal service obligation and to compensate the universal service provider (USP). This paper discusses the interaction between universal service costing and financing and shows that the EC approach may result in distorted results. It also quantifies the effects based on a model calibration with Swiss data. The results show that separate costing and financing leads to a considerable under-compensation of the USP if there is a compensation fund to which every operator contributes. The USP is over-compensated if it is exempt from contributing to the fund (pay or play mechanism). The problem of under- or overcompensation can be resolved by an integrated computation of the net cost that includes the competitive effects of the financing mechanism. Such an integrated approach results in a fair compensation of the USP.

 

Authors: Jaag Christian, Trinkner Urs

To the publication

Motorway in the evening

Ein kohärenter Regulierungsrahmen für den Schienengüterverkehr in der Schweiz

In: Jahrbuch der Schweizerischen Verkehrswirtschaft. C. Lässer, T. Bieger and R. Maggi (Hrsg.), 2011, 97-114

Authors: Grotrian Jobst, Jaag Christian, Trinkner Urs

To the publication

Competition and Welfare Effects of VAT Exemptions

The B.E. Journal of Economic Analysis & Policy 11(1), Article 19

Authors: Dietl, Helmut, Jaag Christian, Lang Markus, Trinkner Urs

To the publication

Impact of VAT-Exemptions in the Postal Sector on Competition and Welfare

In: Reinventing the Postal Sector in an Electronic Age. Edited by M. Crew and P.R. Kleindorfer, Edward Elgar, 267-280

Authors: Dietl Helmut, Jaag Christian, Lang Markus, Lutzenberger Martin, Trinkner Urs

To the book

Envelopes

Bestimmungsfaktoren für die Wettbewerbsentwicklung in Briefmärkten

Research into the development of competition in the letter market

post box england

Postal Markets and Electronic Substitution: Implications for Regulatory Practices and Institutions in Europe

Journal for Competition and Regulation in Network Industries, Vol. 4, 382-397

Authors: Maegli Martin, Jaag Christian, Koller Martin, Trinkner Urs

empty letter

Economies of Scale and Scope and Opening Hours in Post Offices and Agencies

In: Heightening Competition in the Postal and Delivery Sector, edited by M.A. Crew and P.R. Kleindorfer. Cheltenham, UK: Edward Elgar

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 the time necessary to operate the demand. Overall, this analysis confirms the existence of increasing unexploited economies of scale and scope with falling outputs in the Swiss Post office network. Furthermore, the results for the latent class model point to the existence of unobserved heterogeneity in the industry.

 

Authors: Filippini Massimo, Koller Martin, Trinkner Urs

To Publication

Mails

Universal Service Auctions in Liberalized Postal Markets

In: Heightening Competition in the Postal and Delivery Sector, edited by M.A. Crew and P.R. Kleindorfer. Cheltenham, UK: Edward Elgar

Authors: Calzada Joan, Jaag Christian, Trinkner Urs

To Book

empty letter

Regulating the Mail Market

Südwestdeutscher Verlag für Hochschulschriften, ISBN 3838107888

The postal market is one of the oldest if not the oldest network industry. After centuries of private and public postal monopolies, the EC aims to liberalize the mail market entirely whilst safeguarding the Universal Postal Service. Based on Swiss Data, the book first identifies the main drivers of mail volumes and draws special attention to «e-substitution», one of the major challenges of the postal industry. The book then assesses the most important cost characteristics of the postal market. In the core of the book, the main regulatory market models are described, modeled, and analyzed on their price and welfare implications. The last part of the book focuses on the two- sidedness of the postal market, an issue that will be crucial for successful long term regulation of the sector. In doing so, the book outlines the main regulatory challenges of the industry. For the Swiss case, it addresses the key issue whether a full market opening of the Swiss mail market is economically desirable given the current level of universal service obligations in Switzerland.

 

Author: Trinkner Urs

To the publication

Education, Demographics, and the Economy

Journal of Pension Economics and Finance 8(2), 189-223

This paper deals with two issues concerning the effects of population aging on education decisions in the presence of a PAYG pension system: We first analyze the effects of an aging population per se on individual skill choices and continuous education and the production structure. Second, we study the implications of postponed retirement, which is often proposed as a measure to cope with the economic challenges of increased longevity. Our study uses a dynamic general equilibrium framework with overlapping generations and probabilistic aging. The model allows for capital-skill complementarity in the production of final output.

As a response to population aging, in a small open economy with a fixed interest rate, our first simulation shows that GDP is depressed due to an adverse effect on skill choice and labor supply. We then introduce postponed retirement as a potentially dampening policy measure due to its encouragement of human capital formation. However, since there is less private saving in this scenario, the overall effect on GDP is even worse than in the pure aging scenario.

 

Author: Jaag Christian

To the publication

Coûts de la régulation des industries de réseaux: enseignements du réseau postal

Revue d'économie industrielle 127(3)

An important role in the implementation of liberalization processes in network industries is attributed to regulation and thus to regulatory institutions. Regulation is intended to have positive effect on social welfare by correcting market failures. But state intervention also generate costs which we call costs of regulatory governance. These costs result from negative consequences caused by unnecessary regulatory requirements or from the implementation of inappropriate regulatory instruments. According to new institutional economics, these costs will depend upon the formal and informal rules among the involved actors, upon the allocation of property rights among these actors, as well as upon the various principal-agent or more generally contractual relationships among these actors. In this article we define an analytical framework of costs of regulatory governance. We distinguish between direct and indirect costs of regulation: direct costs are related to the institutional design of the regulatory framework and to the behavior of actors, whereas indirect costs arise because of false incentives and ultimately result in an inefficient supply of goods and services. Using the example of the Swiss postal market, we offer an outline of a possible application of the framework. In the present article we neither intend to quantify regulatory costs nor do we question regulation per se. Rather, we develop a framework which helps to structure a discussion about regulatory challenges in the network industries.

 

Authors: Mägli Martin, Jaag Christian, Finger Matthias

To the publication

Tendering Universal Service Obligations in Liberalized Network Industries

Journal for Competition and Regulation in Network Industries 10(4), 313-332

In the past decades, several countries have introduced reverse auctions for allocating universal service or public mission subsidies in various industries. Examples include urban transport, air transport and telecommunications. Recently, such mechanisms have also been envisioned in liberalized postal markets. Issuing an invitation to tender for obligations in otherwise liberalized markets significantly differs from auctioning off a monopolistic provision of services or goods (competition for the market), as is e.g. the case with spectrum auctions in the telecommunications sector. We discuss the rationale for introducing such a regulatory regime as well as
conceptual and practical issues concerning its implementation. It turns out that designing an efficient tender for universal service subsidies in liberalized markets is considerably more difficult than tendering e.g. a monopoly franchise. A first reason is that the cost assessment is more complex in the former case as future competitive market outcomes have to be anticipated; in the case with franchise bidding, at least the number of competitors is given by the tender itself. Hence, revenue effects caused by competitors are easier to calculate. Second, the threat of a winner's moral hazard requires more detailed ex ante regulations. These raise the social cost of universal service provision. Compared to direct designation of universal services with ex post compensation, tendering causes a series of fundamental concerns and trade-offs that make the application of auctions less attractive than in other sectors.

 

Authors: Jaag Christian, Trinkner Urs

To the publication

Arbitration Hammer

Neue Postrichtlinie: Spielräume der Mitgliedstaaten bei der Umsetzung, Konsequenzen für den Binnenmarkt und Folgen für die Schweizer Postpolitik

In: Aktuelle Entwicklungen des Europäischen und Internationalen Wirtschaftsrechts, Band XI, C. Baudenbacher (Hrsg.), Helbing und Lichtenhahn, 337-424

Author: Trinkner Urs

To the publication

Mails

Wettbewerb und Universaldienst in europäischen Postmärkten

In: Fallstudien zur Netzökonomie, G. Knieps und H.-J. Weiss (Hrsg.), Wiesbaden: Gabler, 87-110

Postal services are considered services of general economic interest in Europe. These include addressed items such as letters, newspapers, magazines, and parcels. In the postal sector, legal barriers to market entry were long justified by universal service obligations. The introduction of competition in European postal markets occurred gradually through a phased market opening. The first Postal Directive (97/67/EG) defined the minimum universal service and established the gradual restriction of monopolies held by national postal companies. The second Postal Directive (2002/39/EG) clarified that postal monopolies in member states are only permissible to the extent necessary to ensure the provision of universal service. The third Postal Directive (2008/6/EG) mandates the full market opening by 2011 while ensuring a minimum universal service level, which must be implemented into national law. So far, five countries (Finland, Sweden, the UK, Germany, and the Netherlands) have fully abolished the monopoly on letter mail. The remaining European member states will soon fully open their postal markets to competition as well.

 

Authors: Knieps Günter, Patrick Zenhäusern, Jaag Christian

To the publication

The Effect of Marginal Cost Elasticity on Competitive Balance

Journal of Sports Economics 9(4), 339-350

This article presents a model of talent investments where two clubs compete for prizes. Our model is based on a general class of cost functions with a constant elasticity of marginal costs with respect to investments. The analysis finds that reduced revenue sharing improves competitive balance. Furthermore, we show that a higher elasticity of marginal costs with respect to investments enhances competitive balance and simultaneously reduces the negative effect of revenue sharing on competitive balance.

 

Authors: Grossmann Martin, Dietl Helmut, Trinkner Urs

To the publication

empty letter

Economics of Post Office Networks: Strategic Issues and the Impact on Mail Demand

In: Handbook of Worldwide Postal Reform, M. A. Crew, P. R. Kleindorfer und J. I. Campbell Jr. (Hrsg.), Cheltenham, UK and Northampton, MA, USA: Edward Elgar, 80-97

Authors: Buser Martin, Jaag Christian, Trinkner Urs

To the book

Pricing in Competitive Two-sided Mail Markets

In: Competition and Regulation in the Postal and Delivery Sector, Michael A. Crew und Paul R. Kleindorfer (Hrsg.), Cheltenham, UK and Northampton, MA, USA: Edward Elgar, 136-149

Authors: Jaag Christian, Trinkner Urs

To the book

post box england

Liberalization of the Swiss Letter Market and the Viability of Universal Service Obligations

Swiss Journal of Economics and Statistics 143(3), 261-282

Author: Jaag Christian

lots of parcels

Economies of scale, density and scope in Swiss Post's Mail Delivery

In: Liberalization of the Postal and Delivery Sector, edited by M. A. Crew and P. R. Kleindorfer, Cheltenham, UK and Northampton, MA, USA: Edward Elgar, 91-101

Authors: Farsi Mehdi, Filippini Massimo, Trinkner Urs

To the book

Package on the treadmill

Forecasting Swiss Mail Demand

In: Progress toward Liberalization of the Postal and Delivery Sector, M. A. Crew and P. R. Kleindorfer (Hrsg.), Springer, 267-280

The demand for mail is facing a great challenge. In recent years, substitutes such as e-mail and SMS (Short Message Service) have become a cheap, fast and convenient alternative. In the near future, new broadband-based services, the breakthrough of digital signatures, fully Web-based payment systems, and contracting solutions will further affect the mailing industry. In Switzerland, total addressed mail peaked in the last quarter of 2000, as shown in Figure 1. Since then, mail volumes have been shrinking. Yet it is not clear whether e-substitution has been the underlying cause or whether this was due to some other factor such as the economic slowdown in Switzerland between 2001 and 2003.

 

Authors: Trinkner Urs, Grossmann Martin

To the book

Liberalization and Regulation of the Swiss Letter Market

In: Regulatory and Economic Challenges in the Postal and Delivery Sector, M. A. Crew and P. R. Kleindorfer (Hrsg.), Boston, MA: Kluwer Academic Publishers, 53-72

Authors: Dietl Helmut, Trinkner Urs, Bleisch Reto

To the book

Contributions

Power transmission lines in the fog

Demand-side response to price signals: current findings and ways for improvement

Panel Presentation Energieforschungsgespräche Disentis 2025

Dynamic electricity tariffs are seen as an important element in the transformation of the energy sector. The presentation held by Urs Trinkner covers insights on price-elasticity of demand and approaches to reducing the price risks for consumers that opt for variable tarrifs.

Dynamic tariffs for a more efficient, greener system

Le Temps, 31 December 2024

Flexible electricity tariffs could make it possible to cope with rising consumption and decentralized generation while minimizing the impact on consumers' bills.

 

Article: Le Temps

 

Authors: Romain de Luze

Solarpanels

Dynamic electricity tariffs - how can they become more attractive for households and SMEs?

Energiewirtschaftliche Tagesfragen 12/2024, Seiten 57-63

Dynamic electricity tariffs are seen as an important element in the transformation of the energy sector. So far, they are still hardly in place in Germany and Switzerland. This article describes their systemic characteristics and approaches to reducing the price risks for consumers, which could lead to better acceptance of dynamic electricity tariffs.

 

Authors: Wolfgang Elsenbast, Urs Trinkner, Christian Winzer

Antitrust Law: Less Emotion, More Economic Sense

Neue Zürcher Zeitung, 10. Juli 2024

Is the current practice of the Swiss Competition Commission (WEKO) regarding the examination of vertical agreements sensible? Are all vertical agreements necessarily harmful? In their guest contribution to the NZZ, the authors address these questions.

 

Article: NZZ Online, Print.

 

Authors: Dr. Samuel Rutz, Dr. Stefan Bühler

Sustainable Action Instead of Bureaucratic Regulation

Neue Zürcher Zeitung, 26. Juni 2024

Is aligning Swiss legislation regarding sustainability reporting with EU rules sensible? In their guest contribution to the NZZ, the authors examine this question primarily from the perspective of Swiss SMEs.

 

Article NZZ Online, Print.

 

Authors: Dr. Samuel Rutz, Dr. Beat Brechbühl

Unsiwap and liquidity provision

Swiss Economics Blog

This blog post is the first of our blog series on Uniswap. In this article we give a short introduction to the functioning of Uniswap and lay down the definition of basic economic terms in connection with its mechanism.


To the blog post...

Strengthening price signals in the electricity market

Die Volkswirtschaft, Februar 2024

Consumers react to price adjustments - even when it comes to electricity. The problem is that the price fluctuations do not usually reach them. More flexible tariff models could make energy consumption more efficient and therefore more ecological.

 

Authors: Nicolas Eschenbaum, Urs Trinkner

To the article (DE)
To the article (FR)

Blockchain and AI in the aviation industry

Swiss Economics Blog

The airline industry was one of the first to adopt many modern technological advancements, such as the use of automatic dependent surveillance broadcasts, GPS and radars. But in comparison to the modern tech giants, airlines appear as “the old guard”, cumbersome companies with legacy technology.


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Dynamic vs. Static Security in Staking Designs

Swiss Economics Blog

This blog post is the last of our Crypto-Staking Blog Series. You can find the first post on the economics of crypto staking here and the second post, with an economic comparison of staking across blockchains, here.


To the blog post...

football

Player Agents vs. FIFA – For the Good of the Game?

Swiss Economics Blog

The newly introduced and already partially implemented FIFA Football Agent Regulations (FFAR) sparked a controversy that is yet to be resolved. How far can and should the international governing body of the world’s most popular sport be allowed to restrict competition within the market of football agents?


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Judge's hammer

Incentive Effects of Flat-Rate Compensation for Legal Representation in Asylum Proceedings

Swiss Economics Blog

The compensation for free legal aid in asylum procedures does not create incentives to submit complaints.


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CAN ENVIRONMENTAL POLICIES PROMOTE THE DEVELOPMENT OF CLEANER TECHNOLOGIES?

Swiss Economics Blog

Environmental policy has been an essential tool for addressing environmental problems worldwide. One of the critical issues policymakers face when designing environmental policies is their potential impact on technological change. The question is, can environmental policies promote the development of cleaner technologies? Calel and Dechezlepretre [1] explore the relationship between environmental policy and directed technological change in the context of the European Union Emissions Trading System (EU ETS). At present, the EU ETS is the largest cap-and-trade program in the world. However, there are many countries that either already implemented or are discussing a cap-and-trade program. In 2011 global carbon markets were worth over $175 billion. According to the World Bank’s State and Trends of Carbon Pricing Report [2] the share of global greenhouse gas (GHG) emissions that is covered by carbon pricing systems has increased from 5% in 2011 to 23% in 2022.


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A Competition Economics Perspective on the AI Act

Swiss Economics Blog

The EU has been working on a law to regulate Artificial Intelligence, known as the AI Act for years. Following recent developments surrounding "ChatGPT," the draft of the AI Act was significantly revised and adopted by the European Parliament on June 14, 2023. The following outlines two aspects of the AI Act that are particularly interesting from a competition economics perspective.


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Cryptocurrency Coin

The Economics of Crypto Staking

Swiss Economics Blog

In this first blog post, we explain the basic terms, economics and mechanisms of staking designs. Later, we compare the staking designs of nine different blockchains.


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Definition of Digitalization

Swiss Economics Blog

Despite the omnipresence of the term "digitalization," it is rarely defined clearly.


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ethereum Coins

The Economic Potential of the Ethereum Merge

Swiss Economics Blog

In an article for cash.ch, Helmut Dietl and Matthias Hafner discuss the potential of the Ethereum Merge.


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chip

AI and its effects on competition

Swiss Economics Blog

An increasing number of competition and regulatory authorities are speaking out about the use of AI in the market. These include the authorities of Germany, the UK, and France.  Accordingly, we can expect that companies that use AI will be scrutinised much more in the coming years.

But what are the competitive harms triggered by AI? Our team of experts for AI and digital markets has synthesized the extensive area of anti-competitive effects of AI into a simple overview of three possible market environments here.


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A public Innovation Fund for Switzerland?

Die Volkswirtschaft, 23 June 2022

The Federal Council wants to strengthen start-ups in the early growth phase by establishing a public Innovation Fund. Four structural models for such an Innovation Fund can be considered, each with its own strengths and weaknesses. The choice of a model is ultimately a political decision and should begin with a precise definition of a fund's objectives ("Form Follows Function").

 

Autors: Matteo Mattmann, Urs Trinkner, Dietmar Grichnik, Michael Greger

Like, Share or Comment on Linkedin

 

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Lines of code

New Data Protection Regulation in the EU: Winners and Losers

Swiss Economics Blog

In a blog article at the University of St. Gallen, our colleague Nicolas Greber explored the impact of the General Data Protection Regulation (GDPR), which was introduced in the European Union in 2018.


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google on the smartphone screen

Hoping for Foreign Judges in the Google Case

Swiss Economics Blog

Foreign proceedings suggest that Google owes its dominant market position in advertising not only to superior technology and innovation. This is also of relevance for Switzerland.


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Pills

Health care system: strengthening cost responsibility by setting targets

Die Volkswirtschaft, 12/2021, S. 61

Inefficiencies and overtreatment account for around one-fifth of healthcare costs. Therefore, the Federal Council aims to eliminate misaligned incentives through a target-based approach. An analysis confirms the potential for significant cost savings but also highlights that this alone will not be enough.

 

To the article (Deutsch/Französisch)

Operating theatre

The opt-out solution is inefficient.

Neue Zürcher Zeitung, 3. Dezember 2021

According to the Federal Council and Parliament, in the future, everyone in Switzerland should be considered an organ donor unless they have explicitly opted out in writing. The idea behind this is that an "opt-out system" would lead to more organ donations compared to an "opt-in system." However, our NZZ article demonstrates that this is not the case. Even in an opt-out system, it is typically the relatives of the deceased who make the decision, provided there is no written expression of will. This makes the two systems quite different.

 

Authors: Ann-Kathrin Crede und Matteo Mattmann

 

Pills

Health Insurance Switching: Why Most Insured People Voluntarily Forego Money

Swiss Economics Blog

A behavioral economics perspective on the issue of switching health insurance providers.


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Crypto assets

Ether Staking

Swiss Economics Blog

Staking the cryptocurrency Ether is quite attractive for long-term investors. But how does staking work? And what annual interest can one expect?


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small growing plant

A New Methodology for Measuring Environmentally Friendly Behavior – The "Carbon Emission Task"

Swiss Economics Blog

A behavioral economics perspective on environmental preferences.


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flat

Sharing Economy: Behavior of Airbnb

Swiss Economics Blog

In the Swiss television economic magazine ECO, Michael Funk provided insights into the risks and opportunities that Airbnb faces during the COVID-19 crisis.


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People queue on the street

Reference Points and the Perception of Easing Restrictions #ExitStrategy

Swiss Economics Blog

In our previous contributions on behavioral economics and the coronavirus crisis, we explored the following topics: #StayHome as a contribution to a public good, the psychology behind panic buying and the significant impact of small interventions. The following post addresses the question of how we perceive the gradual relaxation of measures to protect against the new coronavirus and how this is connected to reference points. In behavioral economics, reference points play a significant role in shaping how people evaluate changes, such as the easing of restrictions, by providing a benchmark against which progress or setbacks are measured.


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Note in the restaurant window "Who is helped and who is not?"

Scarce Resources and the Value of a Human Life #MoralDilemma

Swiss Economics Blog

In our previous contributions on behavioral economics and the coronavirus crisis, we explored the following topics: #StayHome as a contribution to a public good, the psychology behind panic buying, the significant impact of small interventions and the role of reference points in how people perceive easing of restrictions. The following post discusses the conflict between scarce resources and the inviolable value of a human life. In situations where resources are limited, difficult decisions often have to be made about how to allocate them effectively, raising ethical questions about the value of human life and the trade-offs that must sometimes be considered.

In our previous contributions on behavioral economics and the coronavirus crisis, we explored the following topics: #StayHome as a contribution to a public good, the psychology behind panic buying, the significant impact of small interventions and the role of reference points in how people perceive easing of restrictions.


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The Price Mechanism and Its Limits

Swiss Economics Blog

Prices, as is well known, reflect information about supply and demand. They play an important role in coordinating production and consumption plans. High prices signal that a good is scarce, which influences the incentives of market participants: producers increase their output, while consumers reduce their demand. Thus, prices help balance supply and demand.

However, the described guiding function of the price mechanism only works if prices can freely form through competition. During the COVID-19 pandemic, the usual dynamics of price formation were often disrupted, leading to shortages of certain goods, price controls, and restrictions on supply chains, which challenged the typical functioning of the price mechanism.


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Images in the supermarket of lines on the floor

Nudges – Small Measures with a Big Impact #WashYourHands

Swiss Economics Blog

In our first two articles on behavioral economics and the coronavirus crisis, we discussed #StayHome as a contribution to a public good and the psychology behind panic buying (#FullShelves). In the following article, we focus on the powerful impact of small measures and how compliance with them can be encouraged.


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Statistic about corona cases

COVID-19 New Infections in Switzerland: The Federal Council's Measures Are Showing Effect

Swiss Economics Blog

The cumulative number of positive COVID-19 tests is widely reported in the media. However, it is difficult to assess the development of daily new infections from these graphs.


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One person is being vaccinated

How to Encourage People (Voluntarily) to Get the COVID-19 Vaccine?

Swiss Economics Blog

In earlier blog posts, we have already discussed various topics related to the coronavirus crisis and behavioral economics. In this post, we focus on the question of how people can be encouraged (voluntarily) to get the COVID-19 vaccine.


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Empty shelves in a shop

No need for panic buying #FullShelves

Swiss Economics Blog

In our first post, we discussed #StayHome as a contribution to a public good. In the following post, we turn to the behavioral economics perspective on panic buying and how to address it.  #FullShelves


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Empty station concourse

Assessment of COVID-19 Damages for Businesses and Enterprises

Swiss Economics Blog

It is already clear that the economic damages from COVID-19 will be immense. In some industries, revenue losses are so severe that even leading companies fear for their survival. Industries that bring people into contact with one another, such as travel, entertainment, and hospitality, have been particularly hard hit. Many of the affected businesses, especially in the travel, entertainment, and hospitality sectors, will not be able to shoulder the damages on their own.

The government has already extended options for short-time work and provided extensive liquidity assistance. However, many companies will also depend on the goodwill of suppliers or contractual partners to manage the financial strain. When quantifying damages, businesses must carefully consider various factors, such as the validity and scope of insurance coverage, the classification of losses, and how to account for potential future risks and liabilities.

 
 

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Empty track

International COVID-19 Policies: An Attempt at Categorization

Swiss Economics Blog

What implications arise from the trade-off between economy and health for policymakers in light of the COVID-19 pandemic?


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Empty station concourse

#StayHome as a Contribution to a Public Good

Swiss Economics Blog

The global spread of the new coronavirus has forced governments to implement widespread behavioral rules and enforce compliance with sometimes rigorous measures. This new situation requires significant effort from each individual. However, people do not always act entirely rationally, as research in behavioral economics has shown clearly and with evidence. In an exceptional situation like the current one, where people have to adapt to a new daily life quickly and implement prescribed behavioral rules, this becomes particularly apparent. Using behavioral economic insights, seemingly irrational human decisions can be explained and better understood. This opens up the possibility of deriving more effective measures for preventing and slowing the spread of the coronavirus. 

 
 

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Tax return

Don’t Put Off Until Tomorrow… Tax Returns and Procrastination Behavior

Swiss Economics Blog

We all procrastinate: A behavioral economics perspective on why we delay doing things, even when we know we shouldn’t.


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Flood

Screening for Bid Rigging in Road and Civil Engineering Projects

Swiss Economics Blog

Since mid-2020, the Civil Engineering Office of the Canton of Bern has been screening procurement processes for construction services conducted via open procedures for indications of potential bid rigging. A software-based screening tool is used to analyze submitted bids for anomalies in terms of their amount, structure, distribution, and quantity. If normal competitive conditions appear unlikely, further investigations are initiated and appropriate measures are taken—up to and including filing a report with the Competition Commission. With this approach, the office is sending a clear message against cartels in the construction industry and in favor of the efficient use of taxpayer money. Swiss Economics supported the office in the development and implementation of the screening tool.


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Glasses with water

The Importance of Framing for Compliance with #Quarantine Measures

Swiss Economics Blog

In our previous contributions on behavioral economics and the coronavirus crisis, we explored the following topics: #StayHome as a contribution to a public good, the psychology behind panic buying, the significant impact of small interventions, the role of reference points in how people perceive easing of restrictions, the #MoralDilemma  between scarce resources and the inviolable value of human life, as well as #HomeOffice and the importance of trust and reciprocity in that context. This article focuses on the importance of framing in encouraging compliance with #quarantine measures.


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Gamification_SwisCovid App

Increasing the usage of the SwissCovid App with #Gamification

Swiss Economics Blog

In previous blog posts, we have already addressed various topics on the corona crisis and behavioral economics. This post is about the SwissCovid app and how its usage could be increased with #Gamification.


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Internship wages from an economic perspective

Swiss Economics Blog

Many young employees, especially university graduates, complete internships as part of their training or as an entry into professional life. The fact that the pay is often low is widely known and regularly discussed. There is wide variation in internship wages between, but also within, industries. How can wages of internships be explained in economic terms and what is actually a fair wage for interns?


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Laptop and coffee on a desk

The role of trust and reciprocity for #HomeOffice

Swiss Economics Blog

In our previous posts on behavioral economics and the corona crisis, we have explored the following topics: #StayHome as a contribution to a public good, the psychology of hoarding purchases, the big impact of small measures, the role of reference points for the perception of easing measures, and the #MoralDilemma between scarce resources and the inviolable value of a human life. The following article is about #HomeOffice and the role of trust and reciprocity.


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reading newspaper

Competition law and Corona crisis: Assessment of international reactions

Oekonomenstimme, 18 May 2020

Tobias Binz, Christian Jaag und Samuel Rutz untersuchen in einem Artikel in der Oekonomenstimme die unterschiedlichen Reaktionen von Wettbewerbsbehörden auf die Corona-Krise.

 

Autoren: Tobias Binz, Christian Jaag, Samuel Rutz

Swiss flags over a bridge

No One-Size-Fits-All Approach at the Cantonal Level

Finanz und Wirtschaft, 6.5.2020

Matteo Mattmann und Samuel Rutz legen in einem Gastbeitrag für die Finanz und Wirtschaft dar, weshalb sich kantonale Unterstützungspakete an klar definierten Zielen orientieren sollen.

 

Autoren: Matteo Mattmann, Rutz Samuel

How the Federal Council Could Ease COVID-19 Restrictions

Handelszeitung, 7.4.2020  

Newspaper comment by Urs Trinkner on how the government could release its lockdown measures based on current COVID-19 cases.

 

To the commentary (DE)

Comment/Like/Share on Linkedin

 

Market-based incentives for local electricity production

Die Volkswirtschaft, 10/2019, S. 62-64.

We propose an amended electricity market design where guarantees of origin play a more important role.

 

Author: Urs Trinkner

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To the article (FR)

People plan with calender and laptop

Economics of token-based projects

Presentation at CV Labs, May 23th, 2019

Swiss Economic's collaborates with CV VC, the largest investment ecosystem for start-ups using the Blockchain technology in Zug, Switzerland. Swiss Economic's platform for blockchain and cryptocurrencies (cryptecon) mentors the participants of the CV Labs Incubation Program.

 

Christian Jaag and Matthias Hafner met the start-ups and presented their expertise and experience in platform and monetary economics for token-based projects. They presented the most important characteristics, considerations and decisions to be made when designing token-based ecosystems.

 

Authors: Jaag Christian, Hafner Matthias

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Economics of Water

Die Volkswirtschaft, 6/2019, S. 4-7.

Publication on the Economics of Water and whether there is a need to privatise Swiss utilities.

 

Authors: Rutz Samuel, Trinkner Urs

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To the article (French)

Power transmission line from below

Effective implementation of incentive regulations

Umweltschutz der Wirtschaft, issue 4/18-19, p. 33-34

In the article, Urs Trinkner and Martin Lutzenberger discuss means to effectively implementing incentive regulations in the Austrian market for electricity distribution.

 

Authors: Trinkner Urs, Lutzenberger Martin

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reading newspaper

Fusionskontrolle modernisieren

An article in Neue Zürcher Zeitung

In einem Gastkommentar in der Neuen Zürcher Zeitung legen Tobias Binz und Samuel Rutz dar, wieso die schweizerische Fusionskontrolle modernisiert werden muss.

 

Authors: Tobias Binz, Samuel Rutz

Lines of code

Screening for Bid-Rigging in Practice

Pros & Cons of the Swiss Experience

Arbitration Hammer

Competition Policy on the wrong track

An article for Neue Zürcher Zeitung

The "Fair Price Initiative" is being promoted as a remedy for Switzerland's high price island. The concept of relative market power represents a massive intervention in the economic and decision-making freedom of companies. In a guest commentary for the NZZ, Samuel Rutz and Christian Jaag argue that the "Fair Price Initiative" is not effective.

 

Authors: Jaag Christian, Rutz Samuel

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Calculator

Unequal Treatment in Competition Law

An article in Neue Zürcher Zeitung

In an article by Michael Funk and Samuel Rutz in the NZZ, it is highlighted that the thresholds for antitrust intervention in agreements and mergers are diverging within Swiss competition law.

 

Authors: Michael Funk, Samuel Rutz

Package on the treadmill

Postal regulation - Past & Future

Presentation by Christian Jaag

Christian Jaag held a lecture at the PostExpo 2017 about the topic «Postal regulation - Past & Future».

 

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Bitcoins

Postcoin - The future of postal payments?

Presentation by Christian Jaag

Christian Jaag held a lecture at the PostExpo 2017 about the topic «Postcoin - The future of postal payments?».

 

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Mails

Future of the postal sector – folklore or progress?

An article in Neue Zürcher Zeitung

At the beginning of the year, the Federal Council presented a report on the evaluation of the Postal Act. An article by Christian Jaag and Samuel Rutz in the NZZ from February 15, 2017, critically discusses it.

 

Authors: Jaag Christian, Rutz Samuel

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People plan with calender and laptop

Digital competition law is unnecessary

Die Volkswirtschaft, 10-2017, pp. 58-59

Digital markets do not require new legislation. Instead, the behavior of companies in each individual case requires a thorough analysis. Often, the competitive effects are ambivalent.

 

Auhors: Christian Jaag, Samuel Rutz

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Envelopes

Regulation and postal strategies

Network Industries Quarterly, vol. 17(3), pp. 10-13

Authors: Jaag Christian, Moyano Jose Parra, Trinkner Urs

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Solarpanels

Experiences with the opening of the electricity market in the EU

Die Volkswirtschaft 1/2-2015, pp. 58-61

Authors: Trinkner Urs, Scherrer Ivo

How to proceed after the paradigm shift in public service?

Die Volkswirtschaft 7/8-2014, pp. 34-37

Authors: Finger Matthias, Trinkner Urs

Operating theatre

Cost efficiency measurement in the health sector

Pharmaceutical Dialogue, No 32, 4

Author: Koller Martin

Stetoscopes

Aging and Long-Term Challenges for Social Insurance Systems

Die Volkswirtschaft 3-2012, pp. 14-17

Envelopes

Reform of the Postal Sector in Switzerland: A Status Report

Die Volkswirtschaft 04-2011, 43-46

In December 2010, the Swiss Federal Assembly adopted new postal legislation. The present considerations place this reform within the context of current developments and challenges in the postal sector. It highlights the tension in which the postal legislation finds itself and the conflicting objectives underlying it. Today, three long-term central trends shape the postal sector: liberalization, globalization, and digitalization. These trends are the reason for the comprehensive revision of postal legislation. As a result, the previously special status of the postal service is being relativized; however, as a universal service provider still owned by the federal government, it will continue to be a company that must meet various political demands.

 

Authors: Dietl Helmut, Jaag Christian, Trinkner Urs

DE: To the publication

Motorway in the evening

Regulatory risk in the tendering of rail lines

Network Industries Quarterly 12(3), 17-19

Authors: Jaag Christian, Trinkner Urs

To Publication

Bookshelf with books

Intermodal Competition

Postal Technology International: 2011 Annual Showcase, 41-43

Authors: Jaag Christian, Mägli Martin

Cables

A free or regulated wiring? Implementation options for a public fiber optic policy.

Die Volkswirtschaft 11-2009, 46-50

Authors: Jaag Christian, Trinkner Urs

Elements of successful fiber to the home policies

Network Industries Quarterly 11(4), 6-18

Authors: Jaag Christian, Lutzenberger Martin, Trinkner Urs

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Arbitration Hammer

Bottleneck regulation in telecommunications, railways and post

Network Industries Quarterly 11(3), 3-6

Authors: Jaag Christian, Trinkner Urs

To the publication

Incentive Effects in Occupational Pension Schemes - An Equilibrium Analysis

Die Volkswirtschaft 1/2-2009, 67-70

Authors: Jaag Christian, Keuschnigg Mirela

Envelopes

Does a liberalized postal market need a sector specific regulator?

Network Industries Quarterly 10(1), 18-19

For different reasons, most actors in liberalized postal markets call for sector specific regulatory bodies. However those should disappear over time along with an increasingly market-oriented definition of universal services.

 

Authors: Finger Matthias, Trinkner Urs

empty letter

Opening of the Swedish postal market : A model for Switzerland?

Die Volkswirtschaft 5-2007, 10-13

Authors: Jaag Christian, Trinkner Urs