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Title:Railroad Cost Conditions: Implications for Policy
Authors:John Bitzan
Publication Date:Jul 2000
Report #:DP-137
TRID #:00797545
Keywords:competition, cost of service pricing, mergers and acquisitions, railroads, social benefits, welfare economics
Type:Research Report – Department Publications


This study examines the cost implications of mergers and competition over existing rail lines by testing for the condition of cost subadditivity. That is, can industry output be provided at a lower cost by one firm than by more than one firm?

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