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To What Extent Has E-Substitution Impacted the Demand for Letters and Which Factors Are Constraining Its Advance

In: New Business and Regulatory Strategies in the Postal Sector

Author

Listed:
  • Catherine Cazals

    (Toulouse School of Economics, University of Toulouse)

  • Thierry Magnac

    (Toulouse School of Economics, University of Toulouse)

  • Frank Rodriguez

    (Oxera Consulting LLP)

  • Soterios Soteri

    (Royal Mail Group)

Abstract

The demand for letters is in decline because of electronic (e)-substitution. However, there is limited published information on the detail and extent to which the cumulative impact of e-substitution has reduced letter volumes. This chapter provides estimates of the degree to which e-substitution has reduced the demand for B2C business letters in the UK overall and by content type, sender group and age group of recipients. Volumes for such traffic in 2016 are estimated to have been about 40% of the level they would have reached if there had been no e-substitution and the extent to which it has taken place has been highly uneven across different segments of business mail. ANOVA estimates suggest that of the factors examined to account for differences in e-substitution the age of recipients was by far the most important and in a distant second place was the interaction of content-sender factors.

Suggested Citation

  • Catherine Cazals & Thierry Magnac & Frank Rodriguez & Soterios Soteri, 2018. "To What Extent Has E-Substitution Impacted the Demand for Letters and Which Factors Are Constraining Its Advance," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), New Business and Regulatory Strategies in the Postal Sector, pages 269-283, Springer.
    • Handle: RePEc:spr:topchp:978-3-030-02937-1_20
    DOI: 10.1007/978-3-030-02937-1_20
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