ABSTRACT
From whatever economic perspective road freight is viewed, the one characteristic of the mode that stands out above any other is that it is a 'competitive' industry. This chapter examines the factors that make the sector 'competitive' and then considers what kind of outcomes this leads to. It reviews the historical context of the industry, which has a past of strong economic regulation. The main issue of competition is considered through a mainstream economic approach, hence largely neoclassical, although some consideration is given to other economic perspectives of competition and their applicability to the sector. The chapter reviews the outcomes and the mode examined as part of the whole supply chain (i.e. a complementary factor input). It ends with an examination of the public economics of road freight, which covers both the environmental aspects and growing research area of road freight and energy use.
