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The Economics of Railroad “Captive Shipper” Legislation

  • Russell Pittman

    (Economic Analysis Group, Antitrust Division, U.S. Department of Justice)

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    Recent rate increases by U.S. freight railroads have refocused attention on regulation, deregulation, and regulatory reforms in the railroad industry. Legislation introduced into Congress would render a variety of railroad behavior newly subject to the jurisdiction of the antitrust statutes, with potential enforcement by the Antitrust Division and the FTC and through lawsuits brought by state attorneys general or private parties. This paper considers the economic issues raised by legislation and the likely impacts on competition and welfare.

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    File URL: http://www.justice.gov/atr/public/eag/255003.pdf
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    Paper provided by Department of Justice, Antitrust Division in its series EAG Discussions Papers with number 201001.

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    Length: 22 pages
    Date of creation: Jan 2010
    Date of revision:
    Handle: RePEc:doj:eagpap:201001
    Note: Director of Economic Research, Economic Analysis Group, Antitrust Division, U.S. Department of Justice, and Visiting Professor, New Economic School, Moscow. The author thanks Ken Heyer, Donna Kooperstein, Henry Posner III, Oliver Richard, Carl Shapiro, and Lou Thompson for comments on an earlier draft. The Antitrust Division encourages independent research by its economists. The views expressed herein are entirely those of the author and are not purported to reflect those of the U.S. Department of Justice.
    Contact details of provider: Postal: Department of Justice Antitrust Division 450 Fifth Street NW Washington, DC 20530
    Web page: http://www.justice.gov/atr/
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