TOWARD A THEORY OF DEREGULATION: THE CASE OF FREIGHT TRANSPORT
In recent years there has been increasing interest in some form of freight deregulation in this country. A model of intermodal competition among multi-product firms is developed to examine how tariff levels and economic efficiency might be affected by deregulation. This framework serves as a basis for the development of a theory of second best for intermodal competition. It extends the work of Baumol and Bradford to show how pricing and entry rules would be set for second best with (1) total regulation of entry and all tariffs, and (2) partial deregulation, in which only the tariffs of a mode with economies of scale are controlled. These two alternatives and a third one, in which prices and entry are totally deregulated, are compared on welfare grounds.
- Sponsored by the National Science Foundation.
Northwestern University, EvanstonTransportation Center, Leverone Hall
Evanston, IL United States 60201
- BRAEUTIGAM, R
- Publication Date: 0
- Pagination: 27 p.
- TRT Terms: Competition; Deregulation; Economic efficiency; Economics; Freight transportation; Prices; Tariffs
- Uncontrolled Terms: Efficiency
- Subject Areas: Economics; Freight Transportation; Highways; Society;
- Accession Number: 00190107
- Record Type: Publication
- Report/Paper Numbers: 601-76-08
- Contract Numbers: APR75-16731
- Files: TRIS
- Created Date: May 26 1979 12:00AM