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Economic Behaviour of Public Ports in the United States

Economic Behaviour of Public Ports in the United States

US public ports charge less than long-run marginal cost; they receive subsidies, especially in the form of capital grants or public bond issues. There is regional competition, and container traffic tends to be concentrated in certain ports, but total demand is inelastic. The authors consider that general price increases would lead to decreased subsidies and would be socially beneficial.

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