The Impact of Competitive Entry into the Swedish Postal Market
This paper examines how Sweden Post confronted its new competitor and describes the impact of postal competition in Sweden. The paper begins by tracing the origins of competition in the Swedish mail market. Next, it quantifies the challenges faced by the new entrant, CityMail, into a business characterized by large economies of scale. Third, it describes Posten’s responses to competitive entry. Fourth, it assesses the impact of competition on Sweden’s postal prices. Finally, it quantifies the impact of Posten’s response to competition on Swedish consumer surplus.
