DoD's guaranteed traffic program and motor carrier rates

The expected decline in motor carrier rates due to partial deregulation of the industry has been difficult to measure because the expected deregulatory effects have been confounded with recent recessionary effects on rates. By comparing Department of Defense shipments which move under common carrier rates to similar shipments in which strong elements of competition have been introduced, the recessionary effects of rates can be statistically controlled. Qualitative and quantitative models are used to show the significance of the effects of competition on rates. Service quality effects are also discussed. (Author)