The Staggers Rail Act of 1980 substantially reduced regulation of the US freight rail industry. However, a significant amount of rail traffic remains potentially subject to regulatory rate intervention. The prevailing regulatory framework embodies elements of traditional public utility regulation, including fully distributed costing. Furthermore, explicit earnings regulation may be under consideration. This research reviews the evolution of regulatory policy in the rail industry and documents some of the many potential drawbacks to explicit earnings regulation.
Review of Industrial Organization – Springer Journals
Published: Jun 3, 2016
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