Russell Pittman

Russell Pittman
U.S. Department of Justice · Antitrust Division

Ph.D., University of Wisconsin

About

110
Publications
14,666
Reads
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1,977
Citations
Citations since 2017
20 Research Items
647 Citations
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2017201820192020202120222023020406080100120140
2017201820192020202120222023020406080100120140
2017201820192020202120222023020406080100120140

Publications

Publications (110)
Article
Full-text available
The President’s 2021 Executive Order urged the Division to reevaluate certain aspects of antitrust analyses, facilitate a whole-of-government approach to reinvigorating competition, and pursue aggressive antitrust enforcement. Consistent with the Order, Division economists engaged on competition issues with several federal agencies while contributi...
Article
Full-text available
Twenty years of debate regarding the restructuring of the Chinese freight railway have failed to yield a consensus. Early policy statements favoring the creation of above-the-rail competition over a monopoly infrastructure – the “European” model of rail restructuring – have broadened into a lively policy and scholarly debate that includes as an alt...
Article
The lecture opens with a discussion of the modern history of economists’ treatment of network industries: from cost-of-service regulation through incentive regulation to vertical restructuring. This history is then applied to the freight railways sector, followed by a discussion of the current state of the rail restructuring debate – what we term t...
Article
The European Commission adopted in 1991 a policy of encouraging the substitution of motor carrier haulage of freight with rail and water carrier haulage, as part of its “green” agenda of reducing fuel consumption, emission of pollutants, carbon intensity, and road congestion. Regarding railway freight in particular, one policy tool that the Commiss...
Article
Full-text available
One of the most important sectors of the economy in Ukraine is agriculture. Ukraine today is one of the world’s leading grain producers and exporters. The growth of world food needs contributes to the integration of Ukrainian agricultural products into the EU economy. It is a key for the Ukrainian agricultural products to be a part of EU economy. H...
Article
We examine the wage and employment impact on Chinese firms of an increase in import competition associated with China's WTO accession in December 2001, with an emphasis on state‐owned enterprises (SOEs). We find that both wage and employment are negatively impacted by an increase in import competition, but firms with high state ownership cut employ...
Article
Full-text available
This article describes some of the work of Antitrust Division economists over the past year, with a focus on modeling. It begins by illustrating the mapping from evidence to prediction using tools for assessing the effects of mergers using Bertrand, Cournot, and auction models. It then turns to two hot topics in competition policy: the implications...
Article
Full-text available
Research summary Departing from the extant literature which assumes that firms pursue strong environmental performance as a differentiation strategy, we analyse the general relationship between firms’ competitive strategy and their response to heightened market competition. We find that, using a large sample of Chinese manufacturing firms between 2...
Article
The railways industry is a capital-intensive industry requiring very large initial and ongoing investment streams. Proposals to restructure the traditional state-owned monopoly railway in a particular country are often designed to address concerns not only regarding inefficient operations and monopoly stagnation but also the long-term unreliability...
Chapter
Full-text available
The importance of economics to the analysis and enforcement of competition policy and law has increased tremendously in the developed market economies in the past 40 years. In younger and developing market economies, competition law itself has a history of 20–25 years at most—sometimes much less—and economic tools that have proven useful to competi...
Article
Voting trust arrangements have a long history at both the Interstate Commerce Commission (ICC) and the Surface Transportation Board (STB) as devices to protect the incentives of acquiring firms and maintain the independence of acquiring and target firms during the pendency of regulatory investigation of the merger proposal. However, they are not wi...
Article
Full-text available
Purpose. This article examines options available for Ukraine as the country considers proposals to reform and restructure Ukrzaliznytsia. Methodology. The basic restructuring options observed internationally are presented, and the literature concerning their impacts and effectiveness is reviewed. Findings. The creation of competition among freight...
Article
Full-text available
The importance of economics to the analysis and enforcement of competition policy and law has increased tremendously in the developed market economies in the past forty years. In younger and developing market economies, competition law itself has a history of twenty to twenty-five years at most – sometimes much less – and economic tools that have p...
Article
Full-text available
The role of the class I railroads in the USA in hauling both coal and crude oil has changed a good deal in recent years. Though coal remains the single most important commodity for US railroads, the volume carried has been declining since 2008. On the other hand, though oil and other petroleum products continue to account for a fairly small share o...
Article
Voting trust arrangements have a long history at both the Interstate Commerce Commission and the Surface Transportation Board as devices to protect the incentives of acquiring firms and maintain the independence of acquiring and target firms during the pendency of regulatory investigation of the merger proposal. However, they are not without proble...
Article
If the Ukrainian economy is to be successfully restructured going forward, a restructured railway system will have to be part of the picture. This paper begins with a discussion of the crucial role that the Ukrainian railway plays in the Ukrainian economy. We follow with a survey of the world experience with railways restructuring: a large number o...
Article
Some of the countries of the former Soviet Union have taken steps toward reform of the vertically integrated monopoly freight railways that they inherited following the breakup of the USSR, while in others there have been discussions but nothing more. However, even in the countries most active in reform – Russia, Kazakhstan, the Baltic countries –...
Article
South Korea, like many countries, is engaged in a policy debate concerning possible railways reforms. However, unlike most countries, here the focus of discussion has been the government’s proposal to open high-speed passenger train lines to a second train company that would supply on-track competition to KTX trains. While such a policy may indeed...
Article
From the beginning, the debate on the likely results of the proposed acquisition of T-Mobile USA by AT&T focused more on the claims of the parties that “immense” merger efficiencies would overwhelm any apparent losses of competition than on the presence or absence of those losses, and the factors that might affect them, such as market definition. T...
Article
In 2006, Russia amended its competition law and added the concepts of 'collective dominance' and its abuse. This was seen as an attempt to address the common problem of 'conscious parallelism' among firms in concentrated industries. Critics feared that the enforcement of this provision would become tantamount to government regulation of prices. In...
Article
Full-text available
From the beginning, the debate on the likely results of the proposed acquisition of T-Mobile USA by AT&T focused more on the claims of the parties that “immense” merger efficiencies would overwhelm any apparent losses of competition than on the presence or absence of those losses, and the factors that might affect them, such as market definition. T...
Article
In 2006, Russia amended its competition law and added the concepts of “collective dominance” and its abuse. This was seen as an attempt to address the common problem of “conscious parallelism” among firms in concentrated industries. Critics feared that the enforcement of this provision would become tantamount to government regulation of prices. In...
Chapter
Do firms use the political process to evade antitrust prosecution? Are the antitrust enforcement agencies simply one more in a series of parochial, captured bureaucracies, with no intent or ability to further the commonweal?
Article
Many of the characteristics of systems sectors, far from presenting dramatically new questions associated with the “new economy,” exhibit parallels with the characteristics of the “old” network sectors such as rail, electricity, and telecommunications. Regarding antitrust remedies in systems markets, the article argues against a presumption in favo...
Article
The Russian economy relies on the Russian freight railways to an extraordinary degree. In 2001, after years of debate, the Russian government adopted an ambitious plan to transform this vertically integrated, government owned monopoly into a system that would rely more on private investment and competition and less on government ownership and regul...
Article
The Chinese freight railways system has been under capacity pressure and apparently acting as a constraint on continued economic growth for several years now. Earlier government consideration of serious structural reforms has given way to an emphasis on a dramatic expansion of the track network, most conspicuously by construction of high-speed pass...
Article
Full-text available
The stand-alone-cost test has become an expensive, extensive, and time-consuming component of the regulatory practice of the U.S. Surface Transportation Board in the performance of its statutory duty to protect “captive shippers” from monopoly rail rates. A close examination of the history of its adoption and application suggests only a tenuous con...
Article
Recent rate increases by U.S. freight railroads have refocused attention on regulation, deregulation, and regulatory reforms in the railroad industry. Legislation introduced into Congress would render a variety of railroad behavior newly subject to the jurisdiction of the antitrust statutes, with potential enforcement by the Antitrust Division and...
Article
The continuation of China's remarkable economic growth will depend on continued increases in electricity supply. China has commenced a program of electricity sector restructuring, with the announced aim of relying on markets and competition to provide incentives for attracting private investment and encouraging efficiency. However, a close examinat...
Article
Faulhaber’s (1975) concept of cross-subsidization is of crucial importance for regulatory activities. Its basic idea that customers demanding a good should not pay more than they would if they "stood alone” is a fundamental fairness rule which can be applied by independent regulators in infrastructure industrie...
Article
One important issue facing reformers considering the restructuring of the seaports and freight railways sectors of a developing country is the creation of competition � or, alternatively, avoiding the creation or preservation of monopoly power. In seaports a crucial distinction is often that between intraport and interport competition; in freight r...
Article
Freight railway enterprises in both Europe and North America are in the process of significant restructuring, with EC policy changes dictating new ownership, organization, and cooperation arrangements in Europe and a series of major mergers having already led to highly concentrated regional markets in the U.S. and Canada. Mergers, alliances, and or...
Article
According to the Agreement on Stabilization and Integration to European Union, Serbia is obligatory to implement reforms in power sector and its power policy must be in accordance with the European Union power policy. Power sector reforms in Serbia have been started, and certain results were achieved. But, electric power infrastructure became techn...
Article
Romania is a net exporter of electricity to the SE Europe region. Its performance of this role will increase in importance with (a) the completion of another nuclear generator and (b) improvement in capacity for international transmission. Romania has committed itself to an electricity restructuring plan that includes vertical separation, but plans...
Article
As a new member state of the EU, Slovenia has been required to adopt EU legislation in full. The Slovenian electricity market has been partially opened since 2001. From 1 July 2007, when households became eligible customers, the electricity market opened fully. The electricity reforms carried out so far comprise of market liberalization, unbundling...
Article
One important issue facing reformers considering the restructuring of the seaports and freight railways sectors of a developing country is the creation of competition � or, alternatively, avoiding the creation or preservation of monopoly power. In seaports a crucial distinction is often that between intraport and interport competition; in freight r...
Article
This paper contributes empirically to our understanding of informed traders. It analyzes traders' characteristics in a foreign exchange electronic limit order market via anonymous trader identities. We use six indicators of informed trading in a cross-sectional multivariate approach to identify traders with high price impact. More information is co...
Article
"Market power in electricity wholesale spot markets is more likely if there is market segmentation. We show that principal component analysis is a natural tool for the qualitative and quantitative assessment of the presence of local markets. We study whether the New Zealand market has been a national market or a set of local markets since its incep...
Article
Vertical separation in the freight railways sector may sacrifice significant economies of integration. Economies of density suggest that corresponding benefits may be elusive. We examine competitive alternatives to vertical separation. One option is the creation of competition among restructured vertically integrated railways, an option generally l...
Article
Full-text available
The railways of Russia and the Central and Eastern European countries are in the process of restructuring. In most cases, the “vertical separation” reform model is being pursued, and reformers are seeking to introduce competition among freight train operators through the provision of “open access” to the monopoly infrastructure. This paper shows th...
Article
Full-text available
Despite efforts made by European Commission to liberalize electricity markets and foster integration, there are still significant barriers to free competition. Until now, Romania was one of the countries that have been compliant to the European Union’s electricity directives, being ahead of several older member states in this area. However, reforms...
Article
Policy-makers in the post-socialist countries of Eastern Europe face the challenging task of designing appropriate competition policies for the key infrastructure sectors of their economies - energy, transport, and communications - sectors whose efficient functioning is vital to sustained economic development in these countries. The task of facing...
Article
There is a growing consensus among economists that the most procompetitive strategy for restructuring public utility enterprises includes complete vertical separation of the network or grid portion of a sector from other parts of the sector where competition is to be created. Although exceptions to this rule are readily granted, it is generally con...
Article
The railways of Russia and the CEE countries - generally much more freight oriented, and much more important to their countries' economies, than those of Western Europe - are in the process of restructuring. In most cases the "vertical separation" reform model is being pursued, and reformers are seeking to introduce competition among freight train...
Article
Full-text available
In this paper, I argue that such transfers are likely overall to be quite regressive, and thus that a consumer surplus standard rather than a total welfare standard may be appropriate for antitrust. Two common arguments against this standardâ€â€that most mergers are in markets for intermediate goods, and that a consumer welfare standard implies...
Article
Corruption in the public sector erodes tax compliance and leads to higher tax evasion. Moreover, corrupt public officials abuse their public power to extort bribes from the private agents. In both types of interaction with the public sector, the private agents are bound to face uncertainty with respect to their disposable incomes. To analyse effect...
Article
The spread of competition laws in Latin America has been accompanied, as in Central and Eastern Europe, by warnings against over-enforcement, and in particular against enforcement of provisions against the "abuse of a dominant position" in a market that may discourage legitimate, pro-competitive actions and strategies. We examine all instances of c...
Article
The Russian Federation has begun restructuring its electricity sector, following the standard restructuring model of complete vertical separation of generation from transmission, with the aim of creating competition in regional generation markets. This paper examines the structure of the six principal regional generation markets that are in their e...
Article
There is a growing consensus among economists that the most procompetitive strategy for restructuring public utility enterprises includes complete vertical separation of the network or grid portion of a sector from other parts of the sector where competition is to be created. Although exceptions to this rule are readily granted, it is generally con...
Article
Does editorial competition boost newspaper circulation? If metropolitan daily newspapers constitute relevant product and geographic markets, then competition should foster improved quality and offer readers products that are differentiated in some dimensions and thus should result in higher circulation levels. Using 30 years of data on 67 of the 10...
Article
Full-text available
Railways restructuring takes place under very different circumstances and with very different goals in Western Europe, Central and Eastern Europe, and Russia. Observed improvements in productivity associated with vertical access and vertical separation in Western Europe are not certain to be replicated following similar restructuring in transition...
Article
The freight railways sector has three attributes which proved problematic for recent experiments with vertical separation: a) a relatively high share of network costs in total delivered service costs; b) an apparent persistence of economies of scale at the “competitive” train operations level, and, perhaps most important; c) strong economies of ver...
Article
Full-text available
The freight railways sector has three attributes that have proved problematic for recent experiments with vertical separation: a) a relatively high share of network costs in total delivered service costs, b) an apparent persistence of economies of scale at the "competitive" train operations level, and, perhaps most important, c) strong economies of...
Article
The Russian Federation has begun the restructuring of its electricity sector, following the now standard restructuring model of complete vertical separation of generation from transmission, with the aim of creating competition in regional wholesale generation markets. This paper examines the structure of the six principal regional generation market...
Article
Romania's competition law, in many ways similar to Articles 81 and 82 of the Treaty of Amsterdam, includes a unique provision that finds an abuse of a dominant position when a company exports at a price "below production cost" and sets a high domestic price "covering the difference." This paper examines what behavior this provision might target tha...
Article
Fifteen years ago, when economic reformers were writing and enacting competition laws in the transition economies of Central and Eastern Europe, some critics warned that such laws, or too stringent enforcement of such laws, carried the danger of discouraging competitive behaviour and the development of markets. An examination of the enforcement exp...
Article
Full-text available
This paper examines the possibilities for improving the performance and increasing the capacity of China's railroad system through the introduction of competition. Countries throughout the world are in the process of abandoning the centralised, monopoly, state-owned model of the railway in favour of models that create competition. Different competi...
Article
Restructuring of the Russian railways system is well under way. Among the policies just now coming into practice are two that are standard in railways restructuring in other countries: the provision of access to the infrastructure by independent train operating companies, and assurances of non-discriminatory access terms for such companies. However...
Article
Fifteen years ago, when economic reformers were writing and enacting competition laws in the transition economies of Central and Eastern Europe, some critics warned that such laws, or too stringent enforcement of such laws, carried the danger of discouraging competitive behavior and the development of markets. An examination of the enforcement expe...
Article
The Russian Federation is in the process of making major structural changes to its railway and electricity sectors. Both sectors will be at least partly vertically disintegrated, with the aim of creating competition in the "upstream" sector while maintaining state ownership and control of the monopoly "grid". This paper examines the details of refo...
Article
The Russian Federation is in the process of making major structural changes to its railway and electricity sectors. Both sectors will be at least partly vertically disintegrated, with the aim of creating competition in the "upstream" sector while maintaining state ownership and control of the monopoly "grid". This paper examines the details of refo...
Article
"Regulatory reform" once meant either "alternatives to rate-of-return regulation" or "the advantages of privatization". Now that a broad consensus has been reached on each of these two topics, at least among economists, one subject that has moved to center stage is "vertical restructuring". Many reform-minded economists have recommended policies of...
Article
The setting of user prices for enterprises with large fixed costs and marginal costs below average costs – “natural monopolies” – raises important policy questions regarding both efficiency and equity. It has become well accepted among economists that, in a variety of settings, welfare may be improved if such prices are set using systems that are n...
Article
Full-text available
Books reviewed: Vladimir Gimpelson and Douglas Lippoldt, The Russian Labor Market. Between Transition and Turmoil G.A. Cornia and R. Paniccia, The Mortality Crisis in Transitional Economies Giovanni Andrea Cornia and Vladimir Popov, (eds.) Transition and Institutions: The Experience of Gradual and Late Reformers Peter Murrell, (ed.) Assessing the V...
Article
Conventional wisdom argues that all commercial and economic competition between two daily newspapers stops when they merge their advertising and printing capabilities to form a joint operating agreement (JOA). Clearly the JOA acts a monopolist in the sale of advertising, but there are two forces that may constrain the JOA to sell more advertising t...
Article
One of the key determinants of China's ability to continue its economic growth into the 21stcentury and to distribute the benefits of that growth to a broad spectrum of the population will be the further development of its railroad system. This paper examines the possibilities for improving the performance and increasing the capacity of China's rai...
Article
A variety of proposals for creating more competition within the railroad sector and in the broader freight transport sector are under consideration in countries throughout the world. Brazil, though something of a latecomer to wider infrastructure reform, has recently taken large steps in restructuring its railroad system. This paper analyzes Brazil...
Article
One important determinant of the speed and success of transition will be the efficiency of transformation and development of the infrastructure sectors. A great deal of attention has been paid to issues such as privatisation, restructuring, user prices, and terms of access in these sectors, regarding both developed and developing countries. Some is...
Article
In its first steps toward reform of its huge and hugely important railway system, the Russian Federation has begun corporate restructuring of a kind favored by many students of railway reform throughout the world: some kind of separation of the entity controlling the infrastructure from the entity running the trains. This model, designed ultimately...
Article
Full-text available
Not all industries in post-socialist countries are appropriate targets for demonopolization and deregulation: as in the West, some "natural monopoly" sectors will require continued regulation to protect consumers from monopoly abuses. This paper focuses on three aspects of the design of regulatory policy in these countries: the appropriate sectors...
Article
Full-text available
Antimonopoly laws must contain effective provisions for the attack of exclusionary behavior by firms with market power while at the same time not attacking procompetitive behavior by entrants or incumbents. This paper suggests seven textual criteria by which a new law may be evaluated in its performance of these two functions, and applies these cri...
Article
Full-text available
The Polish government is considering methods of the privatizing and possible restructuring of the Polish National Railway, PKP, that would improve the efficiency of the railroad while creating some form of competition in order to prevent monopoly pricing. Traditional intramodal competition is unlikely to be feasible in the foreseeable future, and f...
Article
Our results seem to provide substantial evidence that joint operating agreement's (JOA) act as constrained rather than unconstrained monopolists in setting ad rates and circulation levels. The constraint of having to produce two dailies binds tightly enough to yield JOA CPM's that are much closer to those of competing papers than those of a single-...
Article
The first generation of competition laws in Central Eastern Europe-enacted in 1990 and 1991 in Czechoslovakia, Hungary, Poland, and Russia-have undergone significant amendements following their earliest enforcement period.This paper uses an analytical framework previously used to examine those original laws to examine their amended versions, and to...
Article
Protestations that 'neither neoclassical economics nor Western experience offers clear guidelines concerning optimal competition policies towards state-owned firms in a transition economy' are overly pessimistic. Both sources suggest the importance of attacking barriers to entry into markets, especially when those barriers are associated with verti...
Article
Restrukturyzacja Polskich Kolei Państwowych. Szansa wzrostu konkurencyjności
Article
The "Merger Guidelines" of the U.S. Department of Justice provide the framework for a detailed analysis of the competitive implications of the proposed merger of the Santa Fe and Southern Pacific railroads. Although the gross welfare loss from the merger is found to be large--in the range of $40-230 million per year--the transfers from shippers to...
Article
A comparison between the size of markets alleged in Justice Department merger cases and SIC industries indicates that SIC industries generally are far larger than antitrust markets.
Article
If the firms in an industry are to be successful in raising money to influence government, two conditions must be met: (1) there must be sufficient rents available from government decisions regarding that industry to make such expenditures worthwhile, and (2) the industry must be sufficiently concentrated to avoid a free-rider problem in fund-raisi...
Article
Theoretical discussions of internal organization stress the importance of organization for firm success and profitability. The Williamsonian hypothesis that firms organized using M-form should be more profitable than firms organized using U-form or other organizational structures is the focus of empirical testing in this paper. Pairs of firms are o...
Article
This paper examines the most likely example of anticompetitive behavior uncovered in the U.S. vs. IBM antitrust suit: the introduction by IBM of its 360/90 ‘super computer’ in response to the introduction of a similar machine by a competitor. The two leading competing hypotheses are examined — that IBM introduced its system as a weapon of predation...
Article
Seeks evidence concerning the issues of the relative efficiencies of different institutional arrangements for pollution control and the implications of control requirements for economies of scale and barriers to entry. Data is derived from the estimation of a production function for 30 pulp and paper mills in Wisconsin and Michigan. Concludes that...

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Projects (3)
Project
All Eastern- and Central-European countries freight is increasingly transported by road. But we could assume that railways are still critical to grain transportation. To know how different are basic transport indicators in Eastern- and Central-European countries we aims to compare separated and analyze them by a factor by looking at grain sector.
Project
Working on a paper with 2 Chinese economists to discuss the options for restructuring the Chinese railways.