The Structure Performance Hypothesis and The Efficient Structure Performance Hypothesis-Revisited: The Case of Agribusiness Commodity and Food Products Truck Carriers in the South



hypothesis, then further government intervention in the trucking industry is unnecessary at any
level.

Objectives of the Study

The general objective of this study is to revisit two competing economic hypotheses: (a) the
structure performance hypothesis and (b) the efficient structure hypothesis. The specific
objectives of the study are as follows:

1. To estimate whether the market structure, market share, and profits of the agribusiness
commodity and refrigerated food products truck carriers in the South are based on the
traditional structure performance hypothesis or the efficient structure hypothesis.

2. Based on the model developed for objective 1, estimate whether the market structure,
market share, and profits of the U.S. trucking industry as a whole, by industry segments
and regions are the outcome of the traditional structure performance hypothesis or the
efficient structure hypothesis.

3. Test the traditional structure performance hypothesis and the efficient structure
hypothesis using panel data for firms that operated during the entire study.

Data and Methods

This empirical study used annual and pooled financial and operating data for trucking
companies in the United States for the 9-year period 1994-2002. The data was obtained from
Transportation Technical Services Blue Book of Trucking Companies. Following Kari et al,
2002, the traditional and efficient structure hypothesis may be tested in the trucking industry by
estimating the profit equation:

PFTi0 1CTRi2MKSi3CAEi4CARi5DERi6DRi7DC1+ Ui.



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