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Post is a natural monopoly, at a national scale. It is much more efficient to have a single centralized service doing all mail delivery than several competing s
by thayne 3mo ago
Post is a natural monopoly, at a national scale. It is much more efficient to have a single centralized service doing all mail delivery than several competing services doing the same.
It isn't completely non-rivalrous, but the marginal cost of delivering a parcel diminishes as the number of parcels delivered in an area goes up.
- eru 3mo ago> Post is a natural monopoly, at a national scale. It evidently is not. There's multiple providers.
- thayne 3mo ago1. FedEx and UPS are not at all competitive for delivering non-package mail (letters, bills, etc.). Or even small packages. 2. Commercial providers rely on USPS to deliver packages in some situations.
- eru 3mo agoAbout (1): you know that USPS literally has a monopoly and several legal advantages? About (2): duh, yes, because they ain't stupid. For an analogy: if there's free municipal water, Coca-Cola would make use of that for bottling, too. Or if there were subsidised electricity available etc.