Market Access in Regulated and Unregulated Markets: The Continuing Cost of Interstate Motor Carrier Regulation

Wesley Wilson and Richard Beilock

Journal of Regulatory Economics, 1994, vol. 6, issue 4, 363-79

Abstract: This study examines the effect of regulatory reform in the interstate trucking industry. In our model, carriers travel in round trips and choose to serve different markets corresponding to each leg of the trip. Some carriers have authority to haul freight subject to regulation while other carriers do not. Unlike previous studies, our model applies to decisions across multiple legs. Using a bivariate probit, we find differences in the determinants of access across markets. Entry regulation has a significant influence only in markets dominated by regulated traffic, whereas location has a significant influence only in markets dominated by unregulated traffic. Copyright 1994 by Kluwer Academic Publishers

Date: 1994
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