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Freight Charge Variations in Truck Transport Markets: Price Discrimination or Competitive Pricing?

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  • Richard Beilock
  • Peter Garrod
  • Walter Miklius

Abstract

It is well known that truck freight rates for different commodities over a given route vary and that rates per unit distance for the same commodity over different routes vary. In previous studies this variation has been attributed to noncompetitive behavior. In this paper a hypothesis that observed variations in truck rates are consistent with competitive behavior is tested using conjoint analysis. Trade-offs between costs or rates and other attributes of transport service are estimated from experiments using panels of truck brokers and carriers. The results are consistent with competitive behavior in the trucking industry.

Suggested Citation

  • Richard Beilock & Peter Garrod & Walter Miklius, 1986. "Freight Charge Variations in Truck Transport Markets: Price Discrimination or Competitive Pricing?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 226-236.
    • Handle: RePEc:oup:ajagec:v:68:y:1986:i:2:p:226-236.
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    File URL: http://hdl.handle.net/10.2307/1241424
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    Cited by:

    1. Fisher, Ann & Wheeler, William J. & Zwick, Rami, 1993. "Experimental Methods in Agricultural and Resource Economics: How Useful are They?," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(2), pages 103-116, October.
    2. Gokan, Toshitaka, 2013. "The location of manufacturing firms and imperfect information in transport market," IDE Discussion Papers 398, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Blank, Steven C. & Saitone, Tina & Sexton, Richard & Kalotia, Kabir & Forero, Larry & Nader, Glenn, 2011. "Location and distance effects on western calf and yearling prices," 2011 Annual Meeting, June 29-July 1, 2011, Banff, Alberta,Canada 291744, Western Agricultural Economics Association.
    4. Richards, Timothy J. & Rutledge, Zachariah, 2023. "COVID-19, Truck Rates, and Trucking Shortages," 2023 Annual Meeting, July 23-25, Washington D.C. 335435, Agricultural and Applied Economics Association.

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