An Analysis of the Potential for Cream Skimming in the United States Residential Delivery Market
Postal administrations often claim that without a legal monopoly2 to protect them from cream skimming, they would not be able to continue providing universal service at uniform and affordable prices. Because they serve delivery points with a range of profitability, postal administrations fear that without monopoly protection cream skimmers would capture their high profit routes, leaving them with their less profitable routes. The question is, would cream skimming divert so much volume that universal service at affordable prices becomes infeasible?
KeywordsPostal Administration Universal Service Delivery Point Alternative Delivery Affordable Prex
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