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Is Regulation Necessary for Value-of-Service Pricing?

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  • Richard Beilock

Abstract

This article presents evidence for the existence of value-of-service pricing in the never-regulated market for trucking services to haul Florida produce. Rates per truckload are found to increase by eleven to twelve cents for every one dollar increase in the average daily loss in the value of the cargo due to product deterioration, ceteris paribus. This result is at variance with the commonly held belief that value-of-service pricing in transportation is a form of price discrimination made possible by the policies of rate bureaus and regulatory agencies.

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  • Richard Beilock, 1985. "Is Regulation Necessary for Value-of-Service Pricing?," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 93-102, Spring.
    • Handle: RePEc:rje:randje:v:16:y:1985:i:spring:p:93-102
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    Cited by:

    1. Beilock, Richard & Mahan, Ronald, 1987. "The Nature And Extent Of Problems Related To Unloading Produce," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270143, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Mahan, Ronald & Beilock, Richard, 1990. "Unloading Practices for Produce Revisited," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 30(2).
    3. Beilock, Richard & MacDonald, James & Powers, Nicholas, 1988. "An Analysis of Produce Transportation: A Florida Case Study," Agricultural Economic Reports 308048, United States Department of Agriculture, Economic Research Service.

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