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Scale Economies and Postal Price Caps in Europe: Declining Volumes, Lower Productivity, Higher Postage?

In: The Future of the Postal Sector in a Digital World

Author

Listed:
  • Antonia Niederprüm

    (WIK)

  • Christian M. Bender

    (WIK)

  • Alex Kalevi Dieke

    (WIK)

Abstract

In many countries, postal regulators have implemented price cap regimes to provide incentives for postal operators to improve efficiency and to allow more pricing flexibility. In the price cap formula (RPI − X), the X-factor reflects expected productivity gains that usually reduce the scope of potential price increases such that average prices increase less than inflation. In a world with growing mail volume, efficiency gains were driven by economies of scale and scope and innovations in postal operations.

Suggested Citation

  • Antonia Niederprüm & Christian M. Bender & Alex Kalevi Dieke, 2016. "Scale Economies and Postal Price Caps in Europe: Declining Volumes, Lower Productivity, Higher Postage?," Topics in Regulatory Economics and Policy, in: Michael Crew & Timothy J. Brennan (ed.), The Future of the Postal Sector in a Digital World, pages 19-28, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-24454-9_2
    DOI: 10.1007/978-3-319-24454-9_2
    as

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