New Study Examines Negative Effects of Large Postal Service Price Increases

October 16, 2020

A new economic analysis was recently released seeking to quantify the likely effects of large price increases on package delivery by the US Postal Service.  The whitepaper, prepared by Debra Aron, Ph.D. and Justin Lenzo, Ph.D., with Charles River Associates, examines the impact on US consumers, businesses, and the Postal Service.  The authors analyzed the effects of a variety of price increases, from 50 percent to 300 percent, and found each would result in billions of dollars in harm on businesses of all sizes and consumers, while devasting the Postal Service.  The authors report that businesses engaged in ecommerce would experience reduced volume in sales and as a result, lower profits.  Consumers would also pay higher prices for ecommerce products as retailers take into account the increased shipping costs.  Further information and a copy of the whitepaper is available here