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The Welfare Effects of ICC Rate Regulation Revisited

Clifford Winston ()

Bell Journal of Economics, 1981, vol. 12, issue 1, 232-244

Abstract: This article analyzes the welfare effects of ICC rate regulation for the U.S. surface freight transportation system. An estimate of the deadweight loss under first-best and Ramsey pricing is provided. Various alternatives to current rate regulation are discussed including partial and complete rate reform. The major conclusion regarding piecemeal approaches is that solely deregulating motor freight will increase the amount of traffic misallocation. In the final analysis, the most desirable alternative appears to be deregulation of motor carrier rates accompanied by regulated rate reform in rail.

Date: 1981
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Handle: RePEc:rje:bellje:v:12:y:1981:i:spring:p:232-244