Use Best Response Curve and Is
Use Best Response Curve and Isocost Curve = Labor DisciplineModel to analyze “game” between trucking companies and drivers.
Background: In the past drivers made by mileage between pick upand delivery points which gave drivers and incentive to maximizemileage, (i.e., drive from NYC to LA in two days in spite of safetyrules limiting hours driven per day). Drivers previously recordedfake driving time data to show DOT, but now DOT requires ElectronicLogging which operates while a truck is running and records milesand time. Electronic logging will reduce opportunity for drivers tomaximize miles/income. Also, most drivers view time on the roadaway from home as work time. Trucking companies must bid againstdrivers opportunity costs of working elsewhere when unemployment islow.
Use the labor discipline model to show the effect ontrucking companies of low unemployment and a tight market forworkers in other industries.
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