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The Structure of a Never Regulated Less-Than-Truckload Market in the United States

Published online by Cambridge University Press:  10 May 2017

Richard Beilock ,
Mohammed Rahmani  and
Mercedes Rosalsky
Richard Beilock
Affiliation:
Food and Resource Economics Department at the University of Florida
Mohammed Rahmani
Affiliation:
Food and Resource Economics Department at the University of Florida
Mercedes Rosalsky
Affiliation:
Food and Resource Economics Department at the University of Florida
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Abstract

The structure of the never-regulated, less-than-truckload transport market for Florida ornamentals is examined using concentration ratios, and the Hirchman-Herfindahl, Rosenbluth, and E Indices. The results indicate that this market is not highly concentrated relative to all US markets or to regulated trucking markets. This suggests that the long run structure of the trucking markets where regulations have been relaxed will not be highly concentrated and that economies of size may not be large. It was also found that, despite characteristics favorable to own-account carriage, it plays a minor role in ornamentals transportation relative to in regulated markets. This is consistent with the hypothesis that avoidance of problems and costs related to regulated carriage can be an incentive for firms to adopt own-account carriage.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 16 , Issue 2 , October 1987 , pp. 113 - 122
Copyright
Copyright © 1987 Northeastern Agricultural and Resource Economics Association 

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Footnotes

Acknowledgement should also be extended to Victoria Dailey, U.S. Department of Transportation, James MacDonald. U.S. Department of Agriculture. James Harkins and Russell Cappelle, Jr., Regular Common Carrier Conference, Joanne Casey, American Trucking Associations, and this Journal's reviewers for their comments and suggestions. They are absolved of responsibility for any remaining inaccuracies.

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