Partial deregulation of the railroad industry substantially eased regulatory impediments to consolidation. Since partial deregulation, there has been a massive consolidation of firms in the railroad industry, which has been premised on efficiency gains, network rationalization, and service quality. In this paper, the authors focus on efficiency gains. The authors develop and estimate a model of costs that allows for the estimation of merger specific cost savings as well as industry cost savings. The results suggest that early mergers gave very small effects, but recent 'mega' mergers have given very large effects. The authors' central result is that consolidation in the railroad industry from 1983-1997 accounts for about a 17 percent reduction in industry costs.
Industry Costs and Consolidation: Efficienty Gains and Mergers in the Railroad Industry
2003
62 pages
Report
Keine Angabe
Englisch
Engineering Index Backfile | 1930
|Railroad equipment buying gains
Engineering Index Backfile | 1930
Online Contents | 1997