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The Danish Problem: Soon Everybody’s? A Comparative Analysis of Digitalization Effects on Letter Volumes

In: New Business and Regulatory Strategies in the Postal Sector

Author

Listed:
  • Peter Andersson

    (Linköping University)

  • Sofia Bengtsson

    (Linköping University)

  • Johanna Eriksson

    (Royal Institute of Technology)

Abstract

Letter volumes in Denmark dropped with 75 percent between 2000 and 2016, whereas Sweden’s declined with 34 percent. We make a comparative analysis of Denmark and Sweden by analyzing the effects of digitalization and the strategies from the common USO-provider Postnord. Denmark had a national digitalization strategy already from 2001 and a law in 2012 required everybody to have a digital mailbox. In response to falling demand, prices were increased sharply and service reduced. Sweden has a fragmented market for digital messages and with large postal volumes, competitive prices, a well-functioning market for second class mail and better ability to adjust costs, digital substitution was limited.

Suggested Citation

  • Peter Andersson & Sofia Bengtsson & Johanna Eriksson, 2018. "The Danish Problem: Soon Everybody’s? A Comparative Analysis of Digitalization Effects on Letter Volumes," 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 285-297, Springer.
    • Handle: RePEc:spr:topchp:978-3-030-02937-1_21
    DOI: 10.1007/978-3-030-02937-1_21
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