Front of the envelope

Front of the envelope

Estimating the impact of shifts in postal charges

Competition in the delivery of letters tends to put pressure on incumbents to cut charges to businesses – the most profitable segment of the market – and raise charges to households. What effect does such “rebalancing” have on low-income groups? Frontier has constructed a model that makes it possible to analyse the combined effects of rebalancing on the budgets of different groups of households in the UK.

Front of the envelope