Abstract
Samuel Johnson said Patriotism is the last refuge of a scoundrel and many postal observers believe that the Universal Service Obligation (USO) is the last refuge of a postal service wishing to protect inefficiency, monopoly profits, or economic rents. Despite inefficient service, opaque accounts, and large rents, many postal officials maintain that the monopoly, whatever its faults, is the only means of ensuring universal, affordable postal service for citizens throughout the nation. Without the monopoly, they argue, the post office would be crushed by the cost of the USO. This paper examines when this argument might be valid.
The views expressed in this paper are those of the authors and do not necessarily represent the opinions of Poste Italiane or the Postal Rate Commission.
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Cohen, R. et al. (2002). A Comparison of the Burden of Universal Service in Italy and the United States. In: Crew, M.A., Kleindorfer, P.R. (eds) Postal and Delivery Services. Topics in Regulatory Economics and Policy Series, vol 41. Springer, Boston, MA. https://doi.org/10.1007/978-1-4613-0253-7_5
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