Abstract
THE PRICING POLICY To set postal rates the Postal Rate Commission and the United OF THE POSTAL States Postal Service have employed a pricing policy known as SERVICE: the inverse elasticity rule. In a sharply critical article in this ECONOMICS journal,1 William Tye elevates the rule to demoniacal proportions. MISAPPLIED* But the Postal Service's misapplication of the rule, not the rule itself, should be the object of criticism. Tye's misdirection of blame Frank A. Scott, Jr. leads him to dismiss the rule as simplistic. A less simplistic analysis reveals the significance of the rule, correctly applied, as a policy tool.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
