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Justice Dept investigating BNSF's pricing policies
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Another analogy as to why allowing duopolists to public post prices is that it is akin to the problem of insider trading. On the surface, there may seem to be nothing wrong with a company officer informing key stockholders of an impending transaction that will impact the stock price. Yet we all know that such actions desecrate the sanctity of the market. The same effect occurs when two supposed competitors are allowed to see each others pricing, since the low one will just adjust to match the high one. This destroys the confidentiality of private contracts. There is some irony here, because one of the biggest complaints of railroads prior to Staggers was that they should be allowed to solicit confidential contracts rather than having to post rates publicly. Now that the Class I field has been whittled down to two in the West, it makes more sense for them to publicize their rates to make sure they're not shortselling their captive market services relative to the other player.
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