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Article
Demand Elasticities for Direct Mail and Periodicals Delivery Services: Results from Slovenia
Timotej Jagric, Jani Bekő
ABSTRACT. In this paper, a presentation of functions of demand for the services of the Slovenian national postal operator is given separately for two market segments: the direct mail and periodicals market and the direct mail market. Two findings are highlighted in particular. First, the price elasticity of demand on both markets is below zero. Second, autonomy in price increases is limited, since the analysis of demand functions for direct mail shows positive cross-price elasticity of demand with regard to price fluctuations for TV commercials. Substitution effects on the direct mail market are even more clearly expressed with regard to price fluctuations for advertisements in magazines and daily papers.
KEYWORDS: direct mail, periodicals, elasticity of demand, Slovenia.
JEL classification: C22, L80, L87, P2.