Marcus Alexis and Regulatory Reform in Surface Transportation Industries

Marcus Alexis was a major contributor to the debate on deregulation of the surface transportation industry. He hypothesized that easing restrictions on rate-setting and firm-entry would promote efficiency and enhance consumer welfare in trucking and railroad industries. As commissioner and interim chairman of the Interstate Commerce Commission (ICC) he supported legislation that opened these industries to greater competition. This study revisits the model used by Alexis to derive his hypothesis, and uses current information to test its predictive accuracy long after the initial passage of deregulation. Findings from this study are consistent with Alexis’ forecast. Such evidence of his research expertise is just part of his legacy as a pioneer in the economics profession. Copyright Springer Science+Business Media New York 2014