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Deregulation And Innovation In Railroad Shipping Of Agricultural Commodities: 1972-1995

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  • Wilson, Wesley W.
  • Wilson, William W.

Abstract

This paper describes the important changes that occurred in the U.S. grain handling and transportation system in the period following deregulation in 1980. This system has evolved and will continue to do so in response to technological and institutional changes, competitive pressures, and a changed regulatory regime. The effect has been to induce investments throughout the system ultimately to improve the efficiency. Some of the important rail innovations include the use of rate discounts to induce more efficient movements from origins first, and more recently at destinations. In addition, each railroad has adopted car allocation systems comprising several mechanisms, giving shippers logistical choices which have also facilitated more efficient allocation of cars among shippers. Finally, a number of important implications for the Canadian industry are identified as it evolves through its forthcoming changes.

Suggested Citation

  • Wilson, Wesley W. & Wilson, William W., 1998. "Deregulation And Innovation In Railroad Shipping Of Agricultural Commodities: 1972-1995," AE Series 23090, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddaes:23090
    DOI: 10.22004/ag.econ.23090
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    References listed on IDEAS

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    1. MacDonald, James M., 1989. "Effects of railroad deregulation on grain transportation," Technical Bulletins 312302, United States Department of Agriculture, Economic Research Service.
    2. Wilson, William W. & Priewe, Steven R. & Dahl, Bruce L., 1998. "Forward Shipping Options For Grain By Rail: A Strategic Risk Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-19, December.
    3. Wilson, Wesley W, 1994. "Market-Specific Effects of Rail Deregulation," Journal of Industrial Economics, Wiley Blackwell, vol. 42(1), pages 1-22, March.
    4. James M. MacDonald & Linda C. Cavalluzzo, 1996. "Railroad Deregulation: Pricing Reforms, Shipper Responses, and the Effects on Labor," ILR Review, Cornell University, ILR School, vol. 50(1), pages 80-91, October.
    5. Wilson, William W., 1998. "U.S. Grain Handling And Transportation System: Factors Contributing To The Dynamic Changes In The 1980s And 1990s," AE Series 23081, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. Burton, Mark L, 1993. "Railroad Deregulation, Carrier Behavior, and Shipper Response: A Disaggregated Analysis," Journal of Regulatory Economics, Springer, vol. 5(4), pages 417-434, December.
    7. Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057, Elsevier.
    8. Clifford Winston, 1998. "U.S. Industry Adjustment to Economic Deregulation," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 89-110, Summer.
    9. Ernst Berndt & Ann Friedlaender & Judy Chiang & Christopher Vellturo, 1993. "Cost effects of mergers and deregulation in the U.S. Rail industry," Journal of Productivity Analysis, Springer, vol. 4(1), pages 127-144, June.
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    11. McFarland, Henry, 1989. "The Effects of United States Railroad Deregulation on Shippers, Labor, and Capital," Journal of Regulatory Economics, Springer, vol. 1(3), pages 259-270, September.
    12. Wilson, Wesley W, 1997. "Cost Savings and Productivity in the Railroad Industry," Journal of Regulatory Economics, Springer, vol. 11(1), pages 21-40, January.
    13. MacDonald, James M, 1989. "Railroad Deregulation, Innovation, and Competition: Effects of the Staggers Act on Grain Transportation," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 63-95, April.
    14. Fuller, Stephen & Bessler, David & MacDonald, James & Wohlgenant, Michael, 1987. "Effect of Deregulation in Export-Grain Rail Rates in the Plains and Corn Belt," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 28(1).
    15. Scott E. Atkinson & Joe Kerkvliet, 1986. "Measuring the Multilateral Allocation of Rents: Wyoming Low-Sulfur Coal," RAND Journal of Economics, The RAND Corporation, vol. 17(3), pages 416-430, Autumn.
    16. Fulton, Murray & Gray, Richard S., 1997. "Railways, Competition, and the Hold-up Problem," Conference Papers 258696, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.
    17. Wilson, William W. & Dahl, Bruce L., 1997. "Bidding On Railcars For Grain: A Strategic Analysis," Agricultural Economics Reports 23168, North Dakota State University, Department of Agribusiness and Applied Economics.
    18. Vellturo, Christopher A, et al, 1992. "Deregulation, Mergers, and Cost Savings in Class I U.S. Railroads, 1974-86," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 1(2), pages 339-369, Summer.
    19. Priewe, Steven R. & Wilson, William W., 1997. "Forward Shipping Options For Grain By Rail: A Strategic Risk Analysis; Summary," Agricultural Economics Reports 23256, North Dakota State University, Department of Agribusiness and Applied Economics.
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    Cited by:

    1. Vachal, Kimberly & Bitzan, John, 2000. "The Long-Term Availability of Railroads Services for U.S. Agriculture," UGPTI Department Publication 231803, North Dakota State University, Upper Great Plains Transportation Institute.

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