Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, February 12, 2010

The Economics of Railroad “Captive Shipper” Legislation

Posted by D. Daniel Sokol

Russ Pittman (DOJ) has an interesting new work on The Economics of Railroad “Captive Shipper” Legislation.

ABSTRACT: 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.

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