The monopoly of the United States postal service Research Paper

The monopoly of the United States postal service - Research Paper Example In the course of this assignment I will provide a brief history of the Postal Service, determine what kind of monopoly it is, and examine whether it has engaged in abusive conduct. The Postal Service is a government-granted monopoly established by Congress under the Constitution (Adie, 25). Politicians believed it was important for every citizen to be able to send and receive mail at the same price. The Postal Service has exclusive rights to deliver to mailboxes. It was originally established in the 18th century in Philadelphia by Benjamin Franklin. Since then it has grown in size and powers. It is one of the largest non-military employers in the United States (Postal Facts). However, times have changed for the Postal Service. It runs a large deficit and is increasing financial trouble. This is in part because it must provide equal access to postal service for all Americans, even those in Hawaii and Alaska and rural areas. It has several niche competitors such as Fed-ex that are much more economically successful. These competitors are only permitted to deliver urgent letters and not to mailboxes marked U.S. Mail. The impact the Postal Service has on the marketplace is substantial. It is responsible for a majority of all the mail. Indeed, it chooses who to permit to compete with it. It sees itself as a natural monopoly, but its competitors do not.