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Make Versus Buy in Trucking:Asset Ownership, Job Design, and Information
Abstract
Explaining patterns of asset ownership is a central goal of both organizational economics and industrial organization. We develop a model of asset ownership in trucking, which we test by examining how the adoption of different classes of on-board computers (OBCs) between 1987 and 1997 influenced whether shippers use their own trucks for hauls or contract with for-hire carriers. We find that OBCs' incentive-improving features pushed hauls toward private carriage, but their resource-allocation-improving features pushed them toward for-hire carriage. We conclude that ownership patterns in trucking reflect the importance of both incomplete contracts and of job design and measurement issues.
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Citations
Cited by
Goldfarb, A., & Tucker, C. (2019) · Journal of Economic Literature · doi:10.1257/jel.20171452 · Cited by 2,744
Berger, A. N., Miller, N. H., Petersen, M. A., Rajan, R. G., & Stein, J. C. (2005) · Journal of Financial Economics · doi:10.1016/j.jfineco.2004.06.003 · Cited by 1,888
Firms, Contracts, and Trade Structure
Antras, P. (2003) · The Quarterly Journal of Economics · doi:10.1162/003355303322552829 · Cited by 1,194
Brynjolfsson, E., Li, D., & Raymond, L. (2023) · National Bureau of Economic Research · doi:10.3386/w31161 · Cited by 995
Brynjolfsson, E., Li, D., & Raymond, L. (2025) · The Quarterly Journal of Economics · doi:10.1093/qje/qjae044 · Cited by 1,083
Metadata
- Authors
- Baker, G. P., & Hubbard, T. N.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2003-05-01
- Volume
- 93
- Issue
- 3
- Pages
- 551-572
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W3125327135
- Cited by
- 306
- References
- 0
- FWCI
- 36.34
- Type
- journal article
- Language
- en
- Open access
- closed
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