Abstract
The Private Express Statutes, enacted in 1845, guarantee’ the United States Postal Service (USPS) sole rights to carry letter mail. The principal argument offered in defense of the statutes is that the supply of postal services constitutes a natural monopoly (cf., Priest (1975); and U.S. President’s Commission on Privatization (1988)) and that efficiency is best promoted by having a single firm serve the entire market. According to the argument, more than one supplier in the market leads to higher than necessary production costs and, on account of the raised costs, higher than necessary prices.
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Merewitz, L., Zupan, M.A., Castro, M.C. (1993). Franchise Bidding, Contracting Out, and Worksharing in the Production of Postal Services: Can They Collect, Sort, and Deliver?. In: Crew, M.A., Kleindorfer, P.R. (eds) Regulation and the Nature of Postal and Delivery Services. Topics in Regulatory Economics and Policy Series, vol 12. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-3120-3_5
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DOI: https://doi.org/10.1007/978-1-4615-3120-3_5
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