Postage rates for domestic single piece letters up to 500 grams in Sweden are subject to a price cap, allowing prices to increase by inflation on a yearly basis. With increased digital communication, making unit costs for mail delivery increase faster than inflation, this raises the question whether the current price cap is the most appropriate way to achieve the intended regulatory goals.
In this study, we analyse how well the current price cap and alternative solutions in terms of how well they meet regulatory goals and provide for socio-economic efficiency.
Our results show that the current regulation can fulfil selected regulatory goals at the expense of others, and that it – compared to other alternatives – is an inefficient and expensive solution.
For further information, please contact Anna Möller Boivie