Market choice,entry regulation,and joint production: Market access and market service in motor carrier markets

In this paper I develop and estimate a model explaining firm decisions to serve markets. Firms choose to serve multiple markets within a set of markets, but serve only one set of markets at a time. Entry regulation restricts access to markets and may result in firms not serving particular markets or sets of markets. The empirical analysis suggests that Interstate Commerce Commission entry regulation, despite partial deregulation in 1980, continues to affect firm decisions to serve markets and that the effects vary across markets and may cause a firm to serve an entirely different set of markets.