Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

Make versus Buy in Trucking: Asset Ownership, Job Design, and Information

George P. Baker and Thomas N. Hubbard
The American Economic Review
Vol. 93, No. 3 (Jun., 2003), pp. 551-572
Stable URL: http://www.jstor.org/stable/3132106
Page Count: 22
  • Download ($10.00)
  • Subscribe ($19.50)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
Make versus Buy in Trucking: Asset Ownership, Job Design, and Information
Preview not available

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.

Page Thumbnails

  • Thumbnail: Page 
551
    551
  • Thumbnail: Page 
552
    552
  • Thumbnail: Page 
553
    553
  • Thumbnail: Page 
554
    554
  • Thumbnail: Page 
555
    555
  • Thumbnail: Page 
556
    556
  • Thumbnail: Page 
557
    557
  • Thumbnail: Page 
558
    558
  • Thumbnail: Page 
559
    559
  • Thumbnail: Page 
560
    560
  • Thumbnail: Page 
561
    561
  • Thumbnail: Page 
562
    562
  • Thumbnail: Page 
563
    563
  • Thumbnail: Page 
564
    564
  • Thumbnail: Page 
565
    565
  • Thumbnail: Page 
566
    566
  • Thumbnail: Page 
567
    567
  • Thumbnail: Page 
568
    568
  • Thumbnail: Page 
569
    569
  • Thumbnail: Page 
570
    570
  • Thumbnail: Page 
571
    571
  • Thumbnail: Page 
572
    572