Air cargo deregulation has been a success story, since both carriers and sh
ippers are generally satisfied with its results. Conversely, deregulation o
f the railroad industry, the topic of this paper, is considerably more cont
roversial. While railroads have exploited the relaxed rules since 1980, the
ir customers (shippers) are complaining about lack of competition, high rat
es and poor service. In response, Congress is considering re-regulation of
the railroad industry.