Introduction: The Interstate Commerce Act of 1887

Excerpt

The Interstate Commerce Act of 1887 (ICA) was signed into law on February 4, 1887, by President Cleveland. This Act, originally labeled “An Act to Regulate Commerce,” provided for regulation of interstate rail commerce in the United States. While the Act was originally passed to regulate railroads; it eventually was modified and shaped the regulation of a wide variety of industries and markets that included motor carrier, electricity, telecommunications, and barge markets. Academically, the ICA also stimulated academic research for over 100 years on the rationale for regulation, optimal regulatory design, the estimation of costs and efficiency, demand, market power, the effects of mergers, and a wide variety of other issues. …