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- W629214464 abstract "The Motor Carrier Act of 1980 (MCA) and ICC administrative rulings introduced new entry, expanded existing operating authorities, and stimulated price compe tition in the industry (Bailey and Baum?l, 1984). Several large carriers have argued that new entry reduced their traffic densities and raised their unit costs (Rakowski, 1988). Before the MC A these carriers operated on high density routes, with evenly balanced loads and desirable commodity authorisations. Rather than lowering carrier costs, they allege that deregulation fragmented their work loads, lowered traffic densities, lowered rates, and caused carriers to emphasise less-than-truck load (LTL) traffic. Unfortunately, there is a lack of information on cost structures of individual carriers, and this makes it difficult to determine whether deregulation led to a raising or lowering of costs.1 This paper estimates cost functions of several large carriers and assesses their technical characteristics, including economies of scale and scope. Previous studies of motor carrier costs have been based upon cross-sectional data. Cross-sectional studies assume that carriers face the same technology, instan taneously adapt their operations to output changes, and operate on their long-run cost functions.2 Estimating cost functions for individual carriers by using time series data has a number of advantages. Important carrier characteristics such as" @default.
- W629214464 created "2016-06-24" @default.
- W629214464 creator A5066455822 @default.
- W629214464 date "1991-05-01" @default.
- W629214464 modified "2023-09-23" @default.
- W629214464 title "ECONOMIES OF SCALE AND SCOPE IN THE MOTOR CARRIER INDUSTRY : AN ANALYSIS OF THE COST FUNCTIONS FOR SEVENTEEN LARGE LTL COMMON MOTOR CARRIERS" @default.
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