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Abstract

The Staggers Act of 1980 changed the transaction rules in rail transportation markets, reducing the ability of railroads to jointly control rates. In Staggers, (1) railroad rate bureau authority was modified, (2) rate verification procedures before the ICC were changed, and (3) confidential rate contracts were allowed. In this study, joint rail profit maximizing rates for export wheat are determined for a case study area of the Great Plains and compared with actual rates before and after Staggers. Rates exceeded estimated cartel rates prior to Staggers and fell below after Staggers.

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