TRANSPORTATION REGULATION: ANOTHER DIMENSION

Critics of transportation regulation say that it has transportation. This paper studies the relationship of marginal social benefits, marginal social costs and transportation regulation. This is done by first examining the concept of regulated monopolies, its focus on rate and entry control and its problems. Secondly the goals of economic regulation of transportation, to provide reasonable rates and service and to prevent discrimination and undue preference, in practice and reality are compared. The deficiencies of economic regulations are then examined. They include employing regulation as a substitute for competition, irresponsible regulatory agencies, resource misallocation, monoply power and lack of sensitivity to consumer needs like regulatory lag. The authors compare by figures, the marginal social benefit, marginal social cost of regulating transportation and conclude regulation is justified in addition to the other advantages of regulation such as controlling competition and prices and providing service.

  • Corporate Authors:

    Association of Interstate Commerce Com Practitners

    1112 ICC Building, 12th Street & Constitution Avenue, NW
    Washington, DC  United States  20423
  • Authors:
    • Davis, G M
    • SHERWOOD, C S
  • Publication Date: 1975-1

Media Info

  • Features: Figures; References; Tables;
  • Pagination: p. 164-174
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00095897
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 2 1975 12:00AM