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Ocean Shipping Economics: Free Trade And Antitrust Implications

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  • DAVID A. Butz

Abstract

Many economists and antitrust experts claim that ocean shipping conferences are essentially legalized cartels. They often advocate eliminating ocean shipping conferences' antitrust immunity. This paper argues that conferences also help to coordinate their members' joint investments and thereby allow the historically small firms in this industry to exploit vast network economies (akin to those in other transportation industries) that small firms could not capture on their own. The paper proposes reducing rather than eliminating immunity and calls for an end to many of the regulations currently stifling the industry.

Suggested Citation

  • DAVID A. Butz, 1993. "Ocean Shipping Economics: Free Trade And Antitrust Implications," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 69-80, July.
    • Handle: RePEc:bla:coecpo:v:11:y:1993:i:3:p:69-80
    DOI: 10.1111/j.1465-7287.1993.tb00391.x
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    References listed on IDEAS

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    1. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    2. Pirrong, Stephen Craig, 1992. "An Application of Core Theory to the Analysis of Ocean Shipping Markets," Journal of Law and Economics, University of Chicago Press, vol. 35(1), pages 89-131, April.
    3. Sjostrom, William, 1989. "Collusion in Ocean Shipping: A Test of Monopoly and Empty Core Model s," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1160-1179, October.
    4. Bittlingmayer, George, 1985. "Did Antitrust Policy Cause the Great Merger Wave?," Journal of Law and Economics, University of Chicago Press, vol. 28(1), pages 77-118, April.
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    Cited by:

    1. Cullinane, Kevin, 2004. "7. The Container Shipping Industry And The Impact Of China'S Accession To The Wto," Research in Transportation Economics, Elsevier, vol. 12(1), pages 221-245, January.
    2. DAVID A. Butz, 1993. "Ocean Shipping Economics: Reply," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 86-87, July.
    3. JAMES D. Reitzes, 1993. "Ocean Shipping Economics: Comment," Contemporary Economic Policy, Western Economic Association International, vol. 11(3), pages 81-85, July.

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