An Empirical Examination of Market Access

This report examines the firm decisions to enter markets under conditions of joint production and entry regulation. When firms provide capacity to one market they necessarily provide capacity to additional markets. To utilize capacity, firms must incur access costs. Access costs vary across firms, and low-cost firms earn profits. Entry regulation restricts access to markets that otherwise would receive service resulting in unused capacity and artificial rents. In the empirical application, the authors observe truckers with and without operating authority and find firm regulatory status and other firm attributes dramatically influence firm decisions to access markets resulting in unused capacity and profits.

Language

  • English

Media Info

  • Media Type: Digital/other
  • Features: Figures; References; Tables;
  • Pagination: 29p

Subject/Index Terms

Filing Info

  • Accession Number: 01848108
  • Record Type: Publication
  • Report/Paper Numbers: UGPTI Staff Paper No. 106, SP-106
  • Files: TRIS
  • Created Date: Jun 7 2022 11:04AM