THE DOMESTIC DEMAND FOR AIRMAIL SERVICE BY THE U.S. POSTAL SERVICE

The domestic demand for air freight service (i.e., the domestic air transportation of U.S. mail by the U.S. Postal Service) is investigated. Two types of air freight service are considered--loose sack and containerized. Input share equations derived from minimizing the translog cost function for the U.S. Postal Service are estimated. It is concluded that the own-price elasticity of demand for airmail service by the U.S. Postal Service is responsive and that the elasticity for containerized service is generally more responsive than that for loose-sack service. Consequently, air freight carriers can increase airmail revenue by decreasing rates for containerized service relative to those for loose-sack service.

• Record URL:
  http://onlinepubs.trb.org/Onlinepubs/trr/1985/1012/1012-011.pdf
• Summary URL:
  https://scholar.google.com/scholar_lookup?title=THE+DOMESTIC+DEMAND+FOR+AIRMAIL+SERVICE+BY+THE+U.S.+POSTAL+SERVICE&author=V.+Agarwal&author=R.+PHILLIPS&author=W.+Talley&publication_year=1985
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• Supplemental Notes:
  • Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
• Authors:
  • Agarwal, Vinod B
  • PHILLIPS, RICHARD A
  • Talley, Wayne K
• Publication Date: 1985

Media Info

• Media Type: Print
• Features: References; Tables;
• Pagination: pp 71-74
• Monograph Title: Economic and regulatory issues in intercity bus and other transportation
• Serial:
  • Transportation Research Record
  • Issue Number: 1012
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Air mail service; Demand; Elasticity (Mechanics)
• Identifier Terms: United States Postal Service
• Subject Areas: Administration and Management; Economics; Highways; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00453101
• Record Type: Publication
• ISBN: 0309039010
• Files: TRIS, TRB
• Created Date: May 31 1986 12:00AM