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Mitigating Monopoly or Preventing Discrimination: Comparing Antitrust to Regulatory Goals in the Interstate Commerce Act

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  • Timothy Brennan

Abstract

The Interstate Commerce Act and Sherman Antitrust Act were passed within 3 years of each other. Although regulation and antitrust both address market power, the ICA and Sherman Act had different objectives. After a minimal reference to just and reasonable prices, the ICA focused on preventing price discrimination in rail. No posited Sherman Act goal—inequality, consumer welfare, efficiency—is in the ICA. Priority of discrimination in the ICA, however, is predictable. Shippers would care less about absolute rates—which can be passed on to final consumers—and more about preventing rivals from gaining advantages through input price discounts. Copyright Springer Science+Business Media New York 2013

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  • Timothy Brennan, 2013. "Mitigating Monopoly or Preventing Discrimination: Comparing Antitrust to Regulatory Goals in the Interstate Commerce Act," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(1), pages 103-119, August.
    • Handle: RePEc:kap:revind:v:43:y:2013:i:1:p:103-119
    DOI: 10.1007/s11151-013-9392-x
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    References listed on IDEAS

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    Cited by:

    1. James MacDonald, 2013. "Railroads and Price Discrimination: The Roles of Competition, Information, and Regulation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(1), pages 85-101, August.
    2. Richard L. Schmalensee & Wesley W. Wilson, 2016. "Modernizing U.S. Freight Rail Regulation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 49(2), pages 133-159, September.

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    More about this item

    Keywords

    Antitrust; Interstate Commerce Act; Monopoly; Price discrimination; Regulation; L51; K21; L92;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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