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US Postal Service Competition from Private Carriers

Number of pages: 11

ABSTRACT:
An 11 page paper discussing whether competition from private-sector delivery services such as Federal Express and UPS adversely affects the ability of the US Postal Service to maximize profits. Priority Mail and Express Mail are add-on services of the USPS, but the primary business of private-sector delivery services such as Federal Express and UPS. Certainly the USPS would carry much greater volumes of pieces applicable to the category if private-sector services did not exist, but it is doubtful that competition in the category has been highly significant in preventing the USPS from maximizing profit. Prohibited by law from carrying any profit at all, the USPS perhaps could reduce rates for other services or at least hold them steady without its private-sector competition, but it still would not be allowed to post any significant and ongoing profits from operations. The paper includes one chart and one table. Bibliography lists 13 sources.

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File: CC6_KS-USPS.doc

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