Railroads and Competition: The Santa Fe/Southern Pacific Merger Proposal

Journal of Industrial Economics, 1990, vol. 39, issue 1, pages 25-46

Abstract: The "Merger Guidelines" of the U.S. Department of Justice provide the framework for a detailed analysis of the competitive implications of the proposed merger of the Santa Fe and Southern Pacific railroads. Although the gross welfare loss from the merger is found to be large--in the range of $40-230 million per year--the transfers from shippers to the railroads are much larger. Thus, an overall welfare calculus requires not only an accurate estimate of the efficiencies resulting from the merger, but also a judgment as to the welfare relevance of wealth transfers. Copyright 1990 by Blackwell Publishing Ltd.

View citations in EconPapers

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819900 ... 0.CO%3B2-1&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Blackwell Publishing
Series data maintained by Christopher F. Baum ().