Journal of Regulatory Economics

, Volume 21, Issue 2, pp 143–167

Railroad Deregulation and Consumer Welfare

Authors

  • Jerry Ellig
    • Mercatus Center and Institute for Humane StudiesGeorge Mason University
Article

DOI: 10.1023/A:1014331206366

Cite this article as:
Ellig, J. Journal of Regulatory Economics (2002) 21: 143. doi:10.1023/A:1014331206366

Abstract

Railroad deregulation under the Staggers Act of 1980 generated rate reductions, service enhancements, and other improvements in economic welfare. These benefits appear to be widely shared. There is a low likelihood that some captive shippers pay rates that exceed the rates they would have paid under regulation, some evidence that some captive shippers have paid rates that regulators would judge “unreasonable,” and strong evidence that captive shippers pay higher rates than non-captive shippers. The source of deregulation’s benefits is as noteworthy as their size and distribution. The principal benefits of railroad deregulation stem from cost reduction, not just a closer alignment of prices with pre-deregulation cost levels.

Copyright information

© Kluwer Academic Publishers 2002