Industry Deregulation

The deregulation of industry in the United States occurred overtly in interstate transportation (longdistance trucking and air transport), telecommunications, and banking. Other deregulation occurred primarily in the form of conscious decisions by the Reagan Administration not to enforce many regulations (occupational safety, as an example), unless forced to do so by court action. This research is concerned with the effects of overt deregulation

In interstate trucking, competition has increased. The increase in competition has developed primarily through the entry into the industry of oneman or small carrier operations. Prices have been reduced, and that outcome to Levinson (1986) justifies the deregulation of the industry. The cutthroat competition introduced into the industry, however, has caused drivers to extend their hours of continuous operation, and, in many instances, to neglect rig maintenance. As a consequence, states have been required to increase their monitoring of trucks on the road. The increased state monitoring activities cost money which must be paid through state taxation, and the increased safety problems cost all road users. These prices of deregulation are both hard to measure and easy to overlook. Therefore, they

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the economy? Is AIDS good for longevity? As Michael Mandel (1987, p. 69) said, "you can't bank on deregulation." Air Transportation Deregulation of the air transport industry in the United States was initiated by the Carter Administration in 1978. Momentum was building for deregulation of the industry in the face of resistance by most of the minor and some of the major American airline companies. The principal concern of the smaller airlines with respect to deregulation was a fear that the larger airlines would (1) enter the profitable mediumhaul markets which regulation of the industry had denied to them, (2) underprice the smaller airlines operating in these markets, (3) drive the smaller airlines out of the industry, and (4) eventually raise prices in the mediumhaul markets. Many of the managements of the larger airlines said publicly that they feared that deregulation would ultimately result in (1) an oligopolistic airline industry in the United States, which (2) would be far less competitive than the industry which existed in the mid1970s. The real fears of the managements of the larger airlines, however, were more likely concerned with the loss of protected markets, and the loss of preferential governmentally e
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Approximate Word count = 1508
Approximate Pages = 6 (250 words per page)

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