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Service Quality and Industry Structure: Concentration in the LTL Motor Carrier Industry

Service Quality and Industry Structure: Concentration in the LTL Motor Carrier Industry

High concentration in the less-than-truckload motor carrier industry is examined from the perspective of the differentiated product theory. Under the condition that cost increases of high service quality are within the limits that shippers are willing to pay, only a small number of competing carriers can co-exist.

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