DEREGULATION AND INNOVATION IN RAILROAD SHIPPING OF AGRICULTURAL COMMODITIES: 1972-1995

This paper describes the important changes that occurred in the U.S. grain handling and transportation system in the period following deregulation in 1980. This system has evolved and will continue to do so in response to technological and institutional changes, competitive pressures, and a changed regulatory regime. The effect has been to induce investments throughout the system ultimately to improve the efficiency. Some of the important rail innovations include the use of rate discounts to induce more efficient movements from origins first, and more recently at destinations. In addition, each railroad has adopted car allocation systems comprising several mechanisms, giving shippers logistical choices which have also facilitated more efficient allocation of cars among shippers. Finally, a number of important implications for the Canadian industry are identified as it evolves through its forthcoming changes.transportation, grain, logistics, Public Economics,

PARTICIPATION AND LEARNING IN AUCTIONS: BIDDING DECISIONS IN EGYPTIAN OILSEED AUCTIONS

Auctions are common mechanisms for identifying prices and suppliers of commodities and are particularly important in agricultural marketing. Information asymmetries among bidders may be ameliorated over time through some form of learning. In this study, we incorporate prior decisions to participate, information from previous auctions, and firm-specific attributes to explain both the decision to bid and the level of the bid. Our analysis uses data from Egyptian oilseed tenders, an important market both for oilseeds and tendering. Because of the unbalanced nature of the panel data, we are able to evaluate the effects of signals received from previous tenders. We find that firms learn from previous auctions and can gain an informational advantage through some form of representation (e.g., by having an agent and/or direct sales agent to the country). Our results provide strong evidence that learning-by-doing affects the decision to participate and that learning affects the bid value. We also find that firms use outcomes of previous auctions to update information in both their decisions to participate in a market as well as determining the bid level. Finally, we find that firms with representation have a higher probability of participating in auctions and some evidence that they submit higher bids (earning higher returns).auction, bidding, tenders, optimal bids, learning, Marketing,

PRICE ADJUSTMENTS IN CHERRY MARKETS

Buyers of cherries trade initially without inspection. Upon receipt, buyers sometimes seek to renegotiate the earlier agreements. Empirical results suggest that changing market conditions, fruit quality, and characteristics of the trading partners significantly affect the probability that a trade is renegotiated.Demand and Price Analysis,

Tariff-jumping FDI and Domestic Firms' Profits

Studies of the welfare implications of trade policy often do not take account of the potential for tariff-jumping FDI to mitigate positive gains to domestic producers. We use event study methodology to examine the market effects for U.S. domestic firms that petitioned for antidumping (AD) relief, as well as the effect of announcements of FDI by their foreign rivals in the U.S. market on these U.S. petitioning firms. On average, affirmative U.S. AD decisions are associated with 3% abnormal gains to a petitioning firm when there is no tariff-jumping FDI, but no abnormal gains if there is tariff-jumping FDI. The evidence for this mitigating effect is strongest when announcements of the intended tariff-jumping FDI have already occurred before an AD decision takes place, which happened in a fair number of cases. We also find evidence that the announcements of plant expansions (and, to some extent, new plants) have significantly larger negative effects on U.S. domestic firms' profits than other types of FDI, including acquisitions and joint ventures.

The Staggers Act at 35: Railroad Economics and Regulation

This collection of papers includes authors who served on the National Academy of Science-Transportation Research Board (TRB) Committee for a Study of Freight Rail Transportation and Regulation (2014–15) and other authors who participated in the Economics and Regulation of the Freight Railroad Industry Research Colloquium at Georgetown University (June 2015). It covers topics from the TRB report and a wide range of other topics related to the freight railroad industry. These include: a synopsis of the research and findings of the TRB committee, the financial performance of railroads since deregulation, examination of price regulation, costing theory and methods, measuring revenue adequacy, consequences of providing network access, as well as railroad safety. The collection provides a comprehensive review of regulation, economics, and current issues confronting the freight railroad industry

Characteristics and Costs of Operation of North Dakota's Farm Trucks

Farm Management,

Price Determinants of Ranch Horses Sold at Auction in Texas

A hedonic pricing model was used to determine parameters affecting ranch horse prices at two Texas auctions. Color, sex, age-sex interaction, sale order, and consigning ranch were all found to significantly affect price. Sire analysis found that progeny performance records did not significantly affect price.auction, hedonic model, ranch horses, Demand and Price Analysis, Livestock Production/Industries, C01, Q10,

Leading Transportation Indicators: Forecasting Waterborne Commerce Statistics Using Lock Performance Data

This paper develops and applies a forecasting model for transportation data based on the leading economic indicators literature. The specific application is to forecast river tonnages. Waterborne commerce data reflect tonnages of commodities moved on various rivers and in various directions. They are released after the Lock Performance Monitoring System data which reflect tonnages moving through specific locks. The model presented here forecasts waterborne commerce data from lock performance data. The results suggest that even a very simple model can provide precise forecasts

Wages in Rail Markets: Deregulation, Mergers, and Changing Network Characteristics

The Stagger’s Act of 1980 largely deregulated the Class I Railroad industry and has had profound effects on labor. Between 1978 and 1994, employment in the industry decreased by about 60 percent, while real wages (average compensation) increased by over 40 percent. Earlier research examined employment effects; in this paper, we develop and estimate compensation effects using firm level data. By using firm level data, we are able to identify the effects of partial deregulation, an accompanying and massive consolidation movement as well as changes in firm operating and network characteristics. Our estimates suggest that mergers contributed 5 to 15 percent; partial deregulation contributed about 20 percent; and changes in firm operating and network characteristics contributed 4 to 5 percent to the overall increase in wages