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Railroad Deregulation, Carrier Behavior, and Shipper Response: A Disaggregated Analysis

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  • Burton, Mark L
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    Abstract

    The Staggers Rail Act of 1980 provided American railroads with almost complete relief from rate regulation. Regulatory reforms resulted in rapid and pronounced changes in firm behavior and an eventual reconfiguration of the industry as a whole. This investigation provides a highly disaggregated study of deregulated rail rates for 17 commodities. The results indicate that the Staggers Act fundamentally altered the way in which rail carriers price their services. As importantly, the results suggest that shippers have responded to altered railroad behavior by changing the characteristics of their shipments. Together, the changes in railroad behavior and shipper responses to these variations have produced lower railroad rates for a small but measurable number of movements across a wide range of commodities. Copyright 1993 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Regulatory Economics.

    Volume (Year): 5 (1993)
    Issue (Month): 4 (December)
    Pages: 417-34

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    Handle: RePEc:kap:regeco:v:5:y:1993:i:4:p:417-34

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    Web page: http://www.springerlink.com/link.asp?id=100298

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    Cited by:
    1. R. Pittman, 2009. "Railway Mergers and Railway Alliances: Competition Issues and Lessons for Other Network Industries," Competition and Regulation in Network Industries, Intersentia, vol. 10(3), pages 259-279, September.
    2. Ivaldi, Marc & Mccullough, Gerard, 2010. "Welfare Tradeoffs in U.S. Rail Mergers," IDEI Working Papers 344, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Schmidt, Stephen, 2001. "Market structure and market outcomes in deregulated rail freight markets," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 99-131, January.

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