Deregulation, Mergers, and Cost Savings in Class I U.S. Railroads, 1974-86.
In this paper we attempt to disentangle the effects of deregulation on rail costs from those directly attributable to mergers. We estimate that cost reductions obtained from mergers ranged from a high of 33 percent for the Burlington Northern to a low of a 3 percent cost increase for the CSX. However, firms not engaged in significant merger activities experienced similar cost differentials indicating that consolidation was not a prerequisite for cost savings. We conclude that although mergers did confer some benefits on the participating firms, they were not a prerequisite for railroads being able to achieve substantial cost savings. Coauthors are Ernst R. Berndt, Ann F. Friedlaender, Judy Shaw-Er Wang Chiang, and Mark H. Showalter. Copyright 1992 by MIT Press.
Year of publication: |
1992
|
---|---|
Authors: | Vellturo, Christopher A, et al |
Published in: |
Journal of Economics & Management Strategy. - Wiley Blackwell. - Vol. 1.1992, 2, p. 339-69
|
Publisher: |
Wiley Blackwell |
Saved in:
Saved in favorites
Similar items by subject
-
Find similar items by using search terms and synonyms from our Thesaurus for Economics (STW).