[citation][nom]slabbo[/nom]That's wrong, that's not how competition works. It would allow others to come in and try to provide a better service for maybe even less. If FedEx charged double everyone would just to to UPS, FedEx might even lower prices to get more customers, or another new company would come in to provide that service. If prices double, it's because of price fixing by all companies.[/citation]
if the bulk of the mail got shifted from usps to fedex or ups, either could raise their rates as much as they please, but they would have to stay even.
lets say ups was 1$ and fedex was 5$ in this example
people would shift to ups,
they would fold under the pressure, and packages would get later and later
people would than realise that fedex is faster and pay for the faster service
usp would increas their cost to compensate for the extra crap they are dealing with
things would even out, and fedex would raise rates again, and the cycle would continue.
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now
imagine this
you have a business partner, and they use your service so much, so often, that it benefits you to give them a reduced rate, and even ship their crap faster. gamefly i cant imagine is anywhere near as big as netflix, so they dont get the special treatment.