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Re: Government competition



At 09:12 AM 12/11/98 -0500, Steve Cohen wrote:
 
>The key word is your "allow".  Unless potential private carriers are 
>required to
>provide all the services the Postal Service is required to provide to every
>address in the country, you are allowing cherry-picking with inevitable 
>decline of
>service to the areas not covered by the cherry-pickers, as the USPS is left 
>with
>the losers.

The best anti-cherry-pickiing scheme is, again, direct subsidies (perhaps in
the form of chits that can be used exclusively for that type of service).
Users in less desirable areas will be able to afford higher prices, so
their areas would become more desirable.

--Brett