THE STABILITY/EFFICIENCY REGULATORY TRADE-OFF: THE CASE OF FOR-HIRE TRUCKING

Regulatory reform was initiated to improve the efficiency of the motor carrier industry, but it has been introduced without establishing any programs or institutions to deal with the structural instability that the previous system effectively controlled. The purpose of this paper is to set out the conceptual framework for the examination of the change in the structural stability that can be observed in the truckload (TL) sector of the motor carrier industry. The paper begins with a conceptual model of the stability/efficiency regulatory trade-off frontier. Subsequently, stylized supply and demand models are used to outline the inherent stability/efficiency trade-off that confronts the regulation of the trucking industry. The policy implications of this trade-off are discussed and avenues for dampening the instability of the TL sector are considered. One of these alternatives, the development of an efficient information market, is described in the final section of the paper.

Language

  • English

Media Info

  • Features: Figures; References;
  • Pagination: p. 43-58

Subject/Index Terms

Filing Info

  • Accession Number: 00727064
  • Record Type: Publication
  • Report/Paper Numbers: Volume 1
  • Files: TRIS
  • Created Date: Oct 14 1996 12:00AM