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

  • Peter AnderssonEmail author
  • Sofia Bengtsson
  • Johanna Eriksson
Chapter
Part of the Topics in Regulatory Economics and Policy book series (TREP)

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.

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Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Peter Andersson
    • 1
    Email author
  • Sofia Bengtsson
    • 1
  • Johanna Eriksson
    • 2
  1. 1.Linköping UniversityLinköpingSweden
  2. 2.Royal Institute of TechnologyStockholmSweden

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