SURFACE TRANSPORT - MIDDLE OF THE ROAD SOLUTION

IF EITHER STEADFAST ADHERENCE TO TRADITIONAL REGULATION OR COMPLETE PRICE FREEDOM PREDOMINATES, THE CURRENT UNECONOMIC TRANSPORTATION SITUATION WILL LEAD TO A PRICE WAR BETWEEN PRIVATE AND COMMON CARRIERS. THE CASE OF THE DEREGULATORS IS REVIEWED WELL AS THAT OF THE STATUS QUO'ERS, WITH AN EQUI...

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Bibliographic Details
Published in:Harvard business review 1975-11, Vol.53 (6), p.80
Main Author: Stern, George L
Format: Magazinearticle
Language:English
Subjects:
Common carriers
Deregulation
Online Access:Get full text
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Summary:IF EITHER STEADFAST ADHERENCE TO TRADITIONAL REGULATION OR COMPLETE PRICE FREEDOM PREDOMINATES, THE CURRENT UNECONOMIC TRANSPORTATION SITUATION WILL LEAD TO A PRICE WAR BETWEEN PRIVATE AND COMMON CARRIERS. THE CASE OF THE DEREGULATORS IS REVIEWED WELL AS THAT OF THE STATUS QUO'ERS, WITH AN EQUITABLE MEANS OFFERED OF BRINGING UNREGULATED TRAFFIC INTO COMMON CARRIAGE. THE ICC SHOULD ALLOW THE TERMS OF SUCH CONTRACTS TO PARALLEL CLOSELY THE CRITICAL PARAMETERS A COMPANY EXAMINES TO JUSTIFY ENTRY INTO PRIVATE CARRIAGE. THIS COMPROMISE APPROACH WOULD NOT DISCRIMINATE ACCORDING TO SIZE OF A COMPANY AND THE PROPOSAL WOULD BE LIKELY TO ATTRACT TRAFFIC FROM UNREGULATED MODES TO REGULATED CARRIERS, LONG A POLICY OF THE ICC. THE COMMISSION COULD ASSURE ITSELF THAT BASIC TENETS OF A SOUND PRICING STRUCTURE WILL BE ADHERED TO, AND ALL REGULATED CONTRACTS WOULD BE FILED AS THEY ARE CURRENTLY.
ISSN:0017-8012