E-invoicing as the Principal Driver of Change in B2X Letter Market Definitions
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The postal service industry is experiencing significant changes in its fundamental features in light of rapid and consistent improvements in technology pushed by the broad availability of the internet. The growth in electronic means of communication has had an impact on traditional mail volumes. In particular, demand for addressed B2X mail is under pressure due to such developments as e-invoicing. This paper discusses whether the arrival of e-substitution might alter previous relevant market definitions. The focus of the analysis is whether the reduction in B2X demand follows from entry by a marginal substitute or a gross substitute, reflecting on Brennan and Crew (2014).
KeywordsPrice Increase Conjoint Analysis Relevant Market Postal Letter Monopoly Price
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