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Postal Monopolies in Industrialized Countries: A Case for Deregulation

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  • Horstmann Winfried

    (Bundesministerium für Wirtschaft Referat IA 1, D- 53107 Bonn)

Abstract

Public post offices in most industrialized countries hold a statutory monopoly covering the delivery of letters below a certain weight. Such exclusive rights lead to inefficiencies and distortions to competition. Monopoly regulation is subject to various caveats, for example informational disadvantages of the regulatory authorities, and might even lead to additional distortions. Under the roof of the Universal Postal Union, public post offices have established rules aimed at blocking international re-mailing in the reserved areas. The policy conclusions presented in this article suggest that de-monopolization and flexible prices must obtain priority, in order to enhance efficiency and enlarge the freedom of choice for both suppliers and consumers in the postal sector.

Suggested Citation

  • Horstmann Winfried, 1997. "Postal Monopolies in Industrialized Countries: A Case for Deregulation," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 46(3), pages 302-323, December.
    • Handle: RePEc:lus:zwipol:v:46:y:1997:i:3:p:302-323:n:5
    DOI: 10.1515/zfwp-1997-0305
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