Study on Universal Postal Service and the Postal Monopoly

Abstract

The following appendices have been prepared by a team of subject-matter experts at the School of Public Policy at George Mason University (GMU) under a contract with the Postal Regulatory Commission (PRC). Section 702 of the Postal Enhancement and Accountability Act (PAEA) required the Postal Regulatory Commission (PRC) to submit a report to the President and Congress by late 2008 on universal postal service and the postal monopoly in the United States. GMU responded to a Request for Proposals published by the PRC on November 29, 2007 (PRC-07-01) with a proposal submitted on December 21, 2007. The contract to perform the work was issued February 11, 2008. The final deliverables were submitted to the PRC in November 2008.

The study consists of analyses of legal rules and statutes, historical trajectories, international experiences, economic and econometric models, public needs and expectations, and policy options regarding the postal universal service, universal service obligations, and letter and mailbox monopolies. The appendices reflect this scope: A. Preface B. Universal Service Obligation: A Review of the History and Development of the Laws Relating to the Provision of Universal Postal Service C. Postal Monopoly Laws: The History and Development of the Monopoly on the Delivery of Mail and the Monopoly on Access to Mailboxes D. History of Universal Service and the Postal Monopoly E. Universal Service and Postal Monopoly in Other Countries F. The Economics of the Universal Service Obligation and the Postal Monopoly G. Public Needs and Expectations H. Evaluation of Policy Options The lead authors of each appendix are identified on the respective title page. However, substantial comments and contributions to each have been made by all team members. The different parts are building on a shared understanding of core elements of postal policy in the U.S., differences in opinion on some issues notwithstanding. Thus, we consider this a joint study rather than a collection of separate analyses.