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An Analysis of the Potential for Cream Skimming in the United States Residential Delivery Market

  • Robert H. Cohen
  • William W. Ferguson
  • John D. Waller
  • Spyros S. Xenakis
Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 31)

Abstract

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?

Keywords

Postal Administration Universal Service Delivery Point Alternative Delivery Affordable Prex 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. Cohen, Robert, and Edward Chu. 1997. “A Measure of Scale Economies for Postal Systems.” In Managing Change in the Postal and Delivery Industries, edited by M.A. Crew and P.R. Kleindorfer. Boston: Kluwer Academic Publishers.Google Scholar
  2. Cohen, Robert, Edward Chu, William Ferguson, and Spyros Xenakis. 1997. “A Cross Sectional Comparison and Analysis of Productivity for 21 National Postal Administrations.” In Managing Change in the Postal and Delivery Industries, edited by M.A. Crew and P.R. Kleindorfer. Boston: Kluwer Academic Publishers.Google Scholar
  3. Cohen, Robert, William Ferguson, and Spyros Xenakis. 1993. “Rural Delivery and the Universal Service Obligation: A Quantitative Investigation.” In Regulation and the Nature of Postal Delivery Services, edited by M.A. Crew and P.R. Kleindorfer. Boston: Kluwer Academic Publishers.Google Scholar
  4. General Accounting Office. 1996. “Postal Service Reform; Issues Relevant to Changing Restrictions on Private Letter Delivery” (September).Google Scholar
  5. Nerep, Erik. 1995. “Deregulation of the Postal Service’s Market; report on the abuse by the Postal Office of Its dominant market position and on the Competition Authority’s handling of the question of competition in relation to the Post Office.” Stockholm School of Economics (February).Google Scholar

Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Robert H. Cohen
  • William W. Ferguson
  • John D. Waller
  • Spyros S. Xenakis

There are no affiliations available

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