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Deregulation And Innovation In Railroad Shipping Of Agricultural Commodities: 1972-1995

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  • Wilson, Wesley W.
  • Wilson, William W.

Abstract

This paper describes the important changes that occurred in the U.S. grain handling and transportation system in the period following deregulation in 1980. This system has evolved and will continue to do so in response to technological and institutional changes, competitive pressures, and a changed regulatory regime. The effect has been to induce investments throughout the system ultimately to improve the efficiency. Some of the important rail innovations include the use of rate discounts to induce more efficient movements from origins first, and more recently at destinations. In addition, each railroad has adopted car allocation systems comprising several mechanisms, giving shippers logistical choices which have also facilitated more efficient allocation of cars among shippers. Finally, a number of important implications for the Canadian industry are identified as it evolves through its forthcoming changes.

Suggested Citation

  • Wilson, Wesley W. & Wilson, William W., 1998. "Deregulation And Innovation In Railroad Shipping Of Agricultural Commodities: 1972-1995," AE Series 23090, North Dakota State University, Department of Agribusiness and Applied Economics.
    • Handle: RePEc:ags:nddaes:23090
    DOI: 10.22004/ag.econ.23090
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    References listed on IDEAS

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    1. MacDonald, James M., 1989. "Effects of railroad deregulation on grain transportation," Technical Bulletins 312302, United States Department of Agriculture, Economic Research Service.
    2. Wilson, William W. & Priewe, Steven R. & Dahl, Bruce L., 1998. "Forward Shipping Options For Grain By Rail: A Strategic Risk Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-19, December.
    3. Wilson, Wesley W, 1994. "Market-Specific Effects of Rail Deregulation," Journal of Industrial Economics, Wiley Blackwell, vol. 42(1), pages 1-22, March.
    4. James M. MacDonald & Linda C. Cavalluzzo, 1996. "Railroad Deregulation: Pricing Reforms, Shipper Responses, and the Effects on Labor," ILR Review, Cornell University, ILR School, vol. 50(1), pages 80-91, October.
    5. Wilson, William W., 1998. "U.S. Grain Handling And Transportation System: Factors Contributing To The Dynamic Changes In The 1980s And 1990s," AE Series 23081, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. Burton, Mark L, 1993. "Railroad Deregulation, Carrier Behavior, and Shipper Response: A Disaggregated Analysis," Journal of Regulatory Economics, Springer, vol. 5(4), pages 417-434, December.
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    11. McFarland, Henry, 1989. "The Effects of United States Railroad Deregulation on Shippers, Labor, and Capital," Journal of Regulatory Economics, Springer, vol. 1(3), pages 259-270, September.
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    17. Wilson, William W. & Dahl, Bruce L., 1997. "Bidding On Railcars For Grain: A Strategic Analysis," Agricultural Economics Reports 23168, North Dakota State University, Department of Agribusiness and Applied Economics.
    18. Vellturo, Christopher A, et al, 1992. "Deregulation, Mergers, and Cost Savings in Class I U.S. Railroads, 1974-86," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 1(2), pages 339-369, Summer.
    19. Priewe, Steven R. & Wilson, William W., 1997. "Forward Shipping Options For Grain By Rail: A Strategic Risk Analysis; Summary," Agricultural Economics Reports 23256, North Dakota State University, Department of Agribusiness and Applied Economics.
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    Cited by:

    1. Vachal, Kimberly & Bitzan, John, 2000. "The Long-Term Availability of Railroads Services for U.S. Agriculture," UGPTI Department Publication 231803, North Dakota State University, Upper Great Plains Transportation Institute.

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