In this paper, a contingency theory framework is used to explore a set of interpretive concepts and hypotheses that characterize the situation observed in a rate-making decision by the Postal Rate Commission (PRC). The PRC influences what consumers and organizations pay for postage, which has considerable public policy and marketing implications. Applying the contingency framework to a case study of the 1987 postal rate-making process suggests that further exploration of this model of regulatory decision-making may be feasible.