The Effect on Rate Levels and Structures of Removing Entry and Rate Controls on Motor Carriers

The Effect on Rate Levels and Structures of Removing Entry and Rate Controls on Motor Carriers

Deregulation of the motor carrier industry has led to reduced charges and has not injured those shippers/receivers who were thought to need protection.

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Deregulating Taxi Services: A Word of Caution

This paper studies pricing and capacity decisions in markets for phone-ordered taxicabs. Firms first choose capacities and then compete in prices. As firm demand increases, so does waiting time. This dampens competition and makes prices too high from the social point of view. Efficiency improves if firms choose large capacities. In a two-firm setting, equilibrium capacities are shown to be larger if both firms maximise total profits than if they maximise profits per cab.

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