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The Mississippi River System Shallow Draft Barge Market – Perfectly Competitive or Oligopolistic?

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  • Baumel, C. Phillip

Abstract

Most transportation textbooks and articles on inland waterway navigation assume a perfectly competitive Mississippi River system barge industry. One study found the 1972 and 1977 grain barge industry to be oligopolistic. A second study of the U.S. barge industry found “intra industry competition for the barge industry on a day-to-day basis with easy entry and exit.” Using the concentration ratio and the Herfindahl Index, this study found the Mississippi River barge industry to be oligopolistic. These results suggest that Mississippi River navigation infrastructure studies should not use long run marginal barge costs as a proxy for barge rates.

Suggested Citation

  • Baumel, C. Phillip, 2008. "The Mississippi River System Shallow Draft Barge Market – Perfectly Competitive or Oligopolistic?," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(4).
    • Handle: RePEc:ags:ndjtrf:206971
    DOI: 10.22004/ag.econ.206971
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    References listed on IDEAS

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    1. Jorge Fernandez-Cornejo & Richard E. Just, 2007. "Researchability of Modern Agricultural Input Markets and Growing Concentration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1269-1275.
    2. Anonymous, 0. "Selected Bibliography On International Affairs," Increasing Understanding of Public Problems and Policies, Farm Foundation.
    3. Anonymous, 0. "Report Of Subcommittee On International Affairs," Increasing Understanding of Public Problems and Policies, Farm Foundation.
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