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

Peter Andersson (), Sofia Bengtsson and Johanna Eriksson
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Peter Andersson: Linköping University
Sofia Bengtsson: Linköping University
Johanna Eriksson: Royal Institute of Technology

A chapter in New Business and Regulatory Strategies in the Postal Sector, 2018, pp 285-297 from Springer

Abstract: 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.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:topchp:978-3-030-02937-1_21

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DOI: 10.1007/978-3-030-02937-1_21

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