Expense Preference Behavior in Trucking: An Empirical Note

Document Type

Article

Publication Date

12-1-1996

Department

Economic and Workforce Development

Abstract

This note offers a statistical model which points out that the goal of publicly regulated firms often deviates from profit-maximization. Using a large finn-level panel data set from the trucking industry, we offer estimates which suggest that firm managers of the more heavily regulated common carriers practice utility maximization through higher salaries and more lucrative benefits than the managers (CEOs) of less regulated contract carriers. Our results add to the body of empirical work which supplements the theory of the firm developed by Ronald Coase.

Publication Title

Review of Industrial Organization

Volume

11

Issue

6

First Page

861

Last Page

867

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