Review of Industrial Organization

, Volume 43, Issue 1–2, pp 7–19 | Cite as

The ‘Railroad Problem’ and the Interstate Commerce Act

Article

Abstract

The emergence of railroads presented a problem for the developing economic profession. Railroads, by their very nature, often had a localized monopoly. The check that competition was expected to impose on firm behavior was singularly lacking. At the same time, railroads in the United States were national in scope and thus affected interstate commerce. The Interstate Commerce Act and the Commission spawned by the Act represented the first halting steps towards coping with the monopoly power that was a consequence of the Second Industrial revolution. In this paper, the views of prominent economic and legal thinkers regarding the proper legal framework for railroads are reviewed.

Keywords

Discrimination History of economic thought  Interstate Commerce Act Monopoly Network industries 

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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Department of Finance and EconomicsGeorgia Southern UniversityStatesboroUSA

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