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Business Models: Some Implications for USPS

In: Postal and Delivery Innovation in the Digital Economy

Author

Listed:
  • Michael A. Crew

    (Rutgers Business School, Rutgers University)

  • Timothy J. Brennan

    (University of Maryland, Baltimore County (UMBC))

Abstract

Designing appropriate policies to reform the United States Postal Service (USPS) requires an understanding of business models: privately-owned competitive firms, different forms of regulated monopolies, labor-owned and publicly-owned enterprises, and government agencies. The most crucial factors in comparing these institutional forms are identifying the residual claimants and assessing the power of the incentives and the ability they have to promote efficient operation. Cross-subsidy, allocative and internal efficiency, externalities, innovation, and market structure are also important. Adequate reform of USPS requires Congressional acceptance that the government agency model should be replaced by more independent or privatized models adopted in other countries.

Suggested Citation

  • Michael A. Crew & Timothy J. Brennan, 2015. "Business Models: Some Implications for USPS," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Timothy J. Brennan (ed.), Postal and Delivery Innovation in the Digital Economy, edition 127, pages 1-15, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-12874-0_1
    DOI: 10.1007/978-3-319-12874-0_1
    as

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