MOTOR-CARRIER RATE REGULATION: A CASE STUDY IN CARTEL CONTROL

THE NEED IS NOTED FOR A COMMON ANALYTICAL DESCRIPTION OF THE TRANSPORTATION INDUSTRY TO PROVIDE A COMMON BASIS FOR DISCUSSION OF TRANSPORTATION POLICY. THE PURPOSE OF THE PRESENT PAPER IS TO PROVIDE SUCH A BASIS FOR MOTOR-CARRIER RATE REGULATION. THE NATURAL ECONOMIC CHARACTERISTICS OF MOTOR TRUCKING ARE THOSE OF A HIGHLY COMPETITIVE INDUSTRY. RATE REGULATIONS (TOGETHER WITH CONTROL OF ENTRY) HAVE PREVENTED THESE NATURAL ECONOMIC CHARACTERISTICS FROM DICTATING THE DEVELOPMENT OF A LARGE PART OF MOTOR TRUCKING. UNDER SUCH REGULATION THE ECONOMIC CHARACTERISTICS OF MOTOR TRUCKING ARE THOSE OF WHAT AN ECONOMIST WOULD CALL PRICE- FIXING CARTELS. THE ICC FUNCTIONS IN THE REGULATING OF RATES AS AN OVERSEER OF THE CARTELS INTO WHICH THE RAILROADS AND A LARGE PORTION OF MOTOR TRUCKING ARE ORGANIZED. THE ANALYTICAL DESCRIPTION OF RATE REGULATION AS TYPICAL OF CARTEL CONTROL IS SUBSTANTIATED BY A STUDY OF 176 MOTOR- CARRIER RATE CASES. THE CASES ARE CLASSIFIED AND A DESCRIPTION OF EACH CLASS, ITS RELATIVE FREQUENCY OF OCCURRENCE, AND THE RATIONALE OF THE ICC ARE PRESENTED. IT IS ARGUED THAT THE REGULATION OF MOTOR-CARRIER RATES CAN BEST BE UNDERSTOOD AS A CASE STUDY IN CARTEL CONTROL. ECONOMIC THEORY SUGGESTS A WIDELY-APPLICABLE RATIONALE THAT CAN BE USED TO DESCRIBED RATE REGULATION AND THE FORM OF PRICING CHARACTERISTICS OF MOTOR TRUCKING. /AUTHOR/

  • Supplemental Notes:
    • Vol 39, pp 31-38, 1 TAB
  • Authors:
    • Maxwell, W D
  • Publication Date: 1960

Media Info

  • Monograph Title: Proceedings of the Thirty-Ninth Annual Meeting of the Highway Research Board, Washington, D.C., January 11-15, 1960
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201987
  • Record Type: Publication
  • Report/Paper Numbers: HS-002 276
  • Files: TRIS, TRB
  • Created Date: Aug 29 1971 12:00AM