The Motor Carrier Act of 1980 will probably contribute only minimally to improved vehicle use and associated operating efficiency and will do little to strengthen the competitive position of motor carriers. However, the dynamic effects of increased competition from liberalized entry provisions and a greater emphasis on independent pricing will exert pressure for rate decreases, thus increasing the competitive strength of motor carriers. The overall effect may be some rather modest diversion of traffic from rail to truck. Given the revenue needs of the railroads and the context and objectives of the Staggers Rail Act of 1980, rate increases will almost certainly predominate over decreases in the post-legislation period due to provisions dealing with profit-maximizing freedom, the elimination of rates below cost, and surcharges. The Staggers Rail-Act has little implication for costs and service performance. The contract rate provisions of the Staggers Rail Act may be more significant competitively than the pricing flexibility provisions. Experience with contracts is thus far too limited to generalize about their likely future impacts.(Author)