IDEAS home Printed from https://ideas.repec.org/a/ucp/jlawec/doi10.1086-719445.html
   My bibliography  Save this article

Price Benchmark Regulation of Multiproduct Firms: An Application to the Rail Industry

Author

Listed:
  • Wesley W. Wilson
  • Frank A. Wolak

Abstract

Building on Harold Demsetz’s argument that market forces can be more effective in disciplining the pricing behavior of firms relative to explicit output price regulation, this paper proposes and analyzes the performance of a price benchmark approach to identify unreasonable prices in multiproduct industries subject to residual reasonable price regulation. An empirical application to the freight rail sector demonstrates that this mechanism has the potential to provide economically meaningful relief to shippers at lower cost, with less administrative burden, and without significant adverse financial consequences for the railroads.

Suggested Citation

  • Wesley W. Wilson & Frank A. Wolak, 2022. "Price Benchmark Regulation of Multiproduct Firms: An Application to the Rail Industry," Journal of Law and Economics, University of Chicago Press, vol. 65(S1), pages 155-190.
    • Handle: RePEc:ucp:jlawec:doi:10.1086/719445
    DOI: 10.1086/719445
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/719445
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/719445
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/719445?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miller, Keaton & Wilson, Wesley W., 2023. "Changes in rail rates for U.S. commodity grain shipments over time," Research in Transportation Economics, Elsevier, vol. 102(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlawec:doi:10.1086/719445. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JLE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.