Working Paper: NBER ID: w7634
Authors: George P. Baker; Thomas N. Hubbard
Abstract: We investigate how the contractibility of actions affecting the value of an asset affects asset ownership. We examine this by testing how on-board computer (OBC) adoption affects truck ownership. We develop and test the proposition that adoption should lead to less ownership by drivers, particularly for hauls where drivers have the greatest incentive to drive in non-optimal ways or engage in rent-seeking behavior. We find evidence in favor: OBC adoption leads to less driver ownership, especially for long hauls and hauls that use specialized trailers. We also find that non-owner drivers with OBCs drive better than those without them. These results suggest that technology-enabled increases in contractibility may lead to less independent contracting and larger firms.
Keywords: No keywords provided
JEL Codes: L14; L22; L92; D23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| OBC adoption (J13) | decrease in truck ownership by drivers (R48) |
| OBC adoption (J13) | improved monitoring (E01) |
| improved monitoring (E01) | decrease in rent-seeking behavior (D72) |
| OBC adoption (J13) | better driving behavior (R48) |