Wednesday, September 25, 2013

Examination of the USPS Study of Postal Price Elasticities

http://www.retailonlineintegration.com/article/a-critical-examination-usps-study-postal-price-elasticities/1
There are problems with the U.S. Postal Service's analysis of postal price elasticities. The study lumps all types of mail together and concludes that raising postal rates will result in a net increase in revenue. The study downplays the nearly 10 to one difference in price elasticity between First Class mail and Carrier Route mail.