Analysis of Postal Price Elasticities

The marketplace for traditional Postal Service products is increasingly competitive. In addition to the long term trend toward electronic media, Postal Service products face intense pressures brought about by the Great Recession. This paper explores an open question raised by these disruptive trends: Are Postal Service customers becoming more price sensitive? Though intuition may suggest that growing competition would have this effect, the answer to this question is best found by letting the data do the talking.