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Analyzing the Prospects for Transactional Mail Using a Sender-Recipient Framework

In: Postal and Delivery Innovation in the Digital Economy

Author

Listed:
  • Philippe Donder

    (Toulouse School of Economics (IDEI & GREMAQ-CNRS))

  • Helmuth Cremer

    (Toulouse School of Economics (IDEI, GREMAQ and Institut Universitaire de France))

  • Frank Rodriguez

    (Oxera)

  • Soterios Soteri

    (Royal Mail Group)

  • Stefan Tobias

    (Royal Mail Group)

Abstract

Letter volumes in countries with advanced postal networks have been in decline since the early to mid-2000s. The principal cause of this decline has been the substitution of paper communications by electronic methods (e-substitution). However, analyses of letter volumes in the USA and UK (see USPS 2010; PwC 2013) suggest that the impact of e-substitution has varied widely across different content types of mail (e.g., advertising mail and transactional mail) and within transactional mail by different segments of traffic. In particular, the UK study concludes that while some segments of transactional mail have largely moved on line others are just beginning this transition. Understanding the processes at work in the development of e-substitution and assessing how their effects differ across different types of transactional mail is of major importance to postal operators and policy makers.

Suggested Citation

  • Philippe Donder & Helmuth Cremer & Frank Rodriguez & Soterios Soteri & Stefan Tobias, 2015. "Analyzing the Prospects for Transactional Mail Using a Sender-Recipient Framework," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Timothy J. Brennan (ed.), Postal and Delivery Innovation in the Digital Economy, edition 127, pages 325-336, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-12874-0_25
    DOI: 10.1007/978-3-319-12874-0_25
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    Keywords

    Consumer Surplus; Final Good; Final Demand; Communication Method; Marginal Cost Price;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services

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