Two major lessons may be drawn from Canadian experience. Firstly, freedom from regulation does not necessarily solve the financial problems of the carriers. The open question is whether the demand schedule for rail transport has now reached the position where, even with highly sensitive price discrimination, it is impossible to cover total costs at any level of output. Secondly, deregulation does not necessarily produce an economically optimal allocation of resources. The arguments advanced for a substantial degree of deregulation in the United States may still be compelling, but it is well to remember that there is no such thing as an economic panacea.

  • Corporate Authors:

    Association of Interstate Commerce Com Practitners

    1112 ICC Building, 12th Street & Constitution Avenue, NW
    Washington, DC  United States  20423
  • Authors:
    • Heads, J
  • Publication Date: 1975-3

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00083830
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Apr 8 1975 12:00AM