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First class postage rates have risen from six cents in 1971 to 25 cents in 1988. This rapid increase might be justifiable if service had improved commen-surately, but in fact postal service has steadily deteriorated. The Postal Service concedes that it takes ten percent longer to deliver a first class letter than it did in the 1960s, and one recent postmaster general admits that delivery may have been more reliable in the 1920s. In this volume, Adie reviews the failures of the U.S. Postal Service - an inability to innovate, soaring labor costs, huge deficits, chronic inefficiency, and declining service standards. He blames most of these problems on the postal service's monopoly status. Competition produces efficiency and innovation; monopoly breeds inefficiency, high costs and stagnation. He also examines the experiences of other countries and other industries that may be valuable in prescribing reform for the postal service. The breakup of AT&T provides lessons that may be applied to postal reform. The long-run effects of deregulation on the airline industry are also examined. Since the postal service has serious union problems, Adie looks at the air traffic controllers' strike and other evidence on pay and labor relations in government unions. Finally, Adie examines the experiences of Canada and Great Britain with privatization of government companies. He then offers a comprehensive - and controversial - reform plan for the U.S. Postal Service, with no further monopoly privileges or taxpayer subsidies. He argues that private companies should be free to compete with the Postal Service, and it, in turn, should be free to compete in all phases of the communications business. Without privatization and deregulation, the Postal Service is doomed to continuing inefficiency, rising costs, worsening labor relations, and an increasing loss of customers to more innovative and efficient service providers. Competition would give the Postal Service a chance to enter the 21st ce
First class postage rates have risen from six cents in 1971 to 25 cents in 1988. This rapid increase might be justifiable if service had improved commen-surately, but in fact postal service has steadily deteriorated. The Postal Service concedes that it takes ten percent longer to deliver a first class letter than it did in the 1960s, and one recent postmaster general admits that delivery may have been more reliable in the 1920s. In this volume, Adie reviews the failures of the U.S. Postal Service - an inability to innovate, soaring labor costs, huge deficits, chronic inefficiency, and declining service standards. He blames most of these problems on the postal service's monopoly status. Competition produces efficiency and innovation; monopoly breeds inefficiency, high costs and stagnation. He also examines the experiences of other countries and other industries that may be valuable in prescribing reform for the postal service. The breakup of AT&T provides lessons that may be applied to postal reform. The long-run effects of deregulation on the airline industry are also examined. Since the postal service has serious union problems, Adie looks at the air traffic controllers' strike and other evidence on pay and labor relations in government unions. Finally, Adie examines the experiences of Canada and Great Britain with privatization of government companies. He then offers a comprehensive - and controversial - reform plan for the U.S. Postal Service, with no further monopoly privileges or taxpayer subsidies. He argues that private companies should be free to compete with the Postal Service, and it, in turn, should be free to compete in all phases of the communications business. Without privatization and deregulation, the Postal Service is doomed to continuing inefficiency, rising costs, worsening labor relations, and an increasing loss of customers to more innovative and efficient service providers. Competition would give the Postal Service a chance to enter the 21st ce
This compilation of original papers selected from the 19th Conference on Postal and Delivery Economics and authored by an international cast of economists, lawyers, regulators and industry practitioners addresses perhaps the major problem that has ever faced the postal sector – electronic competition from information and communication technologies (ICT). This has increased significantly over the last few years with a consequent serious drop in mail volume. All postal services have been hard hit by ICT, but probably the hardest hit is the United States Postal Service, which has lost almost a quarter of its mail volume since 2007. The loss of mail volume has a devastating effect on scale economies, which now work against post offices, forcing up their unit costs. Strategies to stem the loss in volume include non-linear pricing or volume discounts, increased efficiency and the development of new products. This loss of mail volume from ICT is one of a number of current problems addressed in this volume. The Universal Service Obligation (USO) continues to be a leading issue and concern that ICT undermines postal services' ability to finance the USO is discussed. The importance of measuring and forecasting demand and costs take on even greater importance as ICT undermines the foundations of the postal business. This thought provoking book brings to bear new analyses of the most serious threat post offices have ever faced and raises fundamental questions as to the future of mail. Multi-Modal Competition and the Future of Mail is an ideal resource for students, researchers in regulation and competition law, postal administrations, policy makers, consulting firms and regulatory bodies.
Competitive Transformation of the Postal and Delivery Sector is an indispensable source of information and analysis on the current state of the postal and delivery sector. It offers current insights of leading researchers and practitioners into strategy and regulation as well as the economics of this sector. Issues addressed include national and international perspectives, financial viability, the universal service obligation, regulation, competition, entry, the role of scale and scope economies, the nature and role of cost and demand analysis in postal service, productivity, interaction of law and economics, human resources, transition and reform issues. The papers in the book were selected from the papers presented at the 11th Conference on Postal and Delivery Economics, Toledo, Spain, June 4-7, 2003.