This is precisely what the postal monopoly has been doing for years: for 20 years the cia routinely opened over 13,000 letters a year going to and from the ussr, and later extended this operation to include mail from north vietnam, cuba, and other (noncommunist) latin american countries. Us postal service as a monopoly in the united states economy most markets can be classified into four different markets structures but, each and every market in the united states is completely unique from the others. The government’s postal monopoly was preserved, not by providing better service than the private carriers, but by threatening them with arrest there is nothing natural about the postal monopoly if the monopoly were natural, the government wouldn’t have to crush competition with threats and criminal indictments.
The best example of that is the us postal service, which has a government-granted monopoly over the delivery of first class mail in the united states, which comes complete with all the downsides that thoma identifies for us consumers and businesses: prices that are too high and production that is too low. The united states postal service (usps also known as the post office, us mail, or postal service) the pes refers to the postal service's monopoly on the delivery of letters, and the mailbox rule refers to the postal service's exclusive access to customer mailboxes. By law, the postal service has a monopoly only for certain items such as first class mail that is because the postal service has an obligation to deliver these items for the same price (the cost of first class stamps for instance) no matter where you send it in the us.
Econ 211: chp 16 monopoly study play - a public franchise is an exclusive right granted to a firm to supply a good or service - ex: us postal service has exclusive right to deliver first-class mail government license (in us valid for 20 years) monopoly price-setting strategies. Why is the us postal service considered a monopoly if they have competitors such a fedex and ups the postal service has a monopoly only for certain items such as first class mail that is because the postal service has an obligation to deliver these items for the same price (the cost of first class stamps for instance) no matter where you. The us postal service has some important differences compared to foreign posts liberalization in foreign posts originated from a larger political context such as eu unification or a need to improve efficiency and service.
The united states postal service is one of them and since the postal service is a monopoly, it is its own market this paper will discuss the budget dilemmas that the postal service has faced for the past twenty years and if it is in the best interest of the economy for the united states postal service to continue as a monopoly.
Universal service and the postal monopoly: a brief history the united states postal service is the one government agency that touches every american on a daily.