Is it time for a new market definition for letter mail products?

Is it time for a new market definition for letter mail products?

November 30, 2020

Today, Partner Henrik Ballebye Okholm and Economist Martina Facino presented their paper on market definition for letter mail products at the 28th EUI conference on Postal and Delivery Economics organised by Florence School of Regulation Communications and Media.

The paper explores the quantitative methods to define the relevant market for letter mail products, according to the SSNIP test framework. Although economists would normally prefer a revealed preferences approach to estimate the elasticity of demand, using past data on letter mail volumes means that the effect of digitalisation is often not fully reflected. Consequently, the best method for market definition for letter mail products would be carefully designed surveys that measure stated preferences.

Thanks to the organizers of the EUI conference and to the rest of the paper’s authors: Anna Möller Boivie, Elisa Pau, and Bruno Basalisco.

For further information, please contact Economist Martina Facino