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Journal Article

Citation

Dammen SJ. J. Transp. Res. Forum 2005; 44(1): Online.

Copyright

(Copyright © 2005, Transportation Research Forum)

DOI

unavailable

PMID

unavailable

Abstract

The theory of the firm suggests that firms should maximize profit by investing in safety until marginal cost is equal to the marginal benefit. This paper addresses motor carrier safety from the perspective of the firm, developing the theoretical framework for firm safety decisions. Additionally, this paper tests the relationship between firm safety performance and safety practices, new safety technologies, and firm marketing strategies. By testing the impact of the safety performance marketing strategy on carrier accident rates, it can be shown that firm managers have control over the safety performance of their firms through management decisions.

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