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U.S. Postal Service: Pricing Postal Services in a Competitive Environment

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Report Type Reports and Testimonies
Report Date March 25, 1992
Report No. GGD-92-49
Subject
Summary:

The U.S. Postal Service, the nation's largest civilian employer, has operated for 20 years as a governmental quasi-corporation. It has successfully modernized its operations, improved compensation and working conditions for postal employees, foregone the direct taxpayer subsidies that used to support its operations, and maintained mandated universal service--equal service for the same price delivered anywhere in the country. Today, however, competition and constantly rising prices for its services threaten the viability of this important institution. This report (1) describes the Post Office's competition and its response to it, (2) examines the constraints and obstacles that affect its efforts to compete effectively, and (3) evaluates the major issues of postal ratemaking in a competitive environment.

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