THE COSTS AND BENEFITS OF MOTOR TRUCK REGULATION
Many factors indicate that economic regulation of the trucking industry increases the social costs of freight transport while conferring meager benefits in the process. This article explores the rationale for such a prediction and attempts to measure the costs and benefits attributable to the regulation of the trucking industry. It is noted that rate regulation promotes nonprice competition in the form of more frequent scheduling and it is possible that some inventory savings may accrue to consignees. Such an outcome is not certain, however, since the greater flexibility and carrier utilization possible in an unregulated highway transport market might produce equally frequent and speedy service. Even if the $59 million in inventory savings estimated by the Bureau of Economics of the Interstate Commerce Commission is realized, this is a meager benefit to counteract a $5.3 billion additional social cost attributable to the continuation of economic regulation.
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Corporate Authors:
Sage Publications, Incorporated
275 South Beverly Drive
Beverly Hills, CA United States 90212 -
Authors:
- Felton, J R
- Publication Date: 1979
Media Info
- Features: Figures; References;
- Pagination: p. 143-156
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Serial:
- Policy Studies Review Annual
- Volume: 3
- Publisher: Sage Publications, Incorporated
Subject/Index Terms
- TRT Terms: Benefits; Costs; Economics; Freight transportation; Inventory; Motor carriers; Rates; Regulations; Savings; Socioeconomic factors; Transportation; Trucks
- Subject Areas: Economics; Law; Society; Transportation (General);
Filing Info
- Accession Number: 00315022
- Record Type: Publication
- Files: TRIS
- Created Date: Jul 22 1980 12:00AM