The Mississippi River System Shallow Draft Barge Market – Perfectly Competitive or Oligopolistic?

Most transportation textbooks and articles on inland waterway navigation assume a perfectly competitive Mississippi River system barge industry. One study found the 1972 and 1977 grain barge industry to be oligopolistic. A second study of the U.S. barge industry found “intra industry competition for the barge industry on a day-to-day basis with easy entry and exit.” Using the concentration ratio and the Herfindahl Index, this study found the Mississippi River barge industry to be oligopolistic. These results suggest that Mississippi River navigation infrastructure studies should not use long run marginal barge costs as a proxy for barge rates.