The Economics of Railroad “Captive Shipper”
Russell Pittman, EAG 10-1 January 2010
Recent rate increases by U.S. freight railroads have refocused attention
on regulation, deregulation, and regulatory reforms in the railroad industry.
Legislation introduced into Congress would render a variety of railroad
behavior newly subject to the jurisdiction of the antitrust statutes,
with potential enforcement by the Antitrust Division and the FTC and through
lawsuits brought by state attorneys general or private parties. This paper
considers the economic issues raised by legislation and the likely impacts
on competition and welfare.
October 2009 version
JEL codes: K21, K23, L41, L42, L43, L51, L92
Keywords: freight railroads, captive shippers, antitrust, regulation