2. Responsiveness of rates to number of pickups and drops, carrier type, and method of arrangement In a competitive environment there should be little reason to hypothesize that additional services, such as multiple pick- ups and drops, would not command higher rates; or that rates should differ for comparable services depending upon carrier type. However, the aforementioned conclusions reached by Maze and Pavlovic et al. that these conditions do exist raise these questions. Moreover, there are considerable concerns through- out the industry that the method of arranging for carriage is not neutral with respect to rate levels. Of particular inter- est is the role of brokers. Brokers are extremely important in Florida (estimated by Pavlovic et al. and by Beilock and Fletcher to account for between 55 and 65 percent of all per- ishable shipments). Carriers interviewed by the author have expressed their feelings that brokers affect rate levels. Such sentiments are also echoed in a study by Taff. Taff reports that brokers actively set rates using various devices such as rate sheets and minimum per mile charges. No actual evidence, however, is presented to support the hypothesis that rates for loads arranged by brokers differ from those which are otherwise set. The answers to the questions of the effects of pickups and deliveries, carrier type, and method of load arrangement on rate levels are important in assessing market efficiency. If rates are not compensatory for additional services, such as pickups and drops, then inefficiencies will likely occur as shippers demand more service than is justified by the actual additional costs (i.e., real marginal costs exceed the marginal benefits). Such a situation could occur if truckers are re- peatedly deceived into believing that shipments entail fewer pickups and drops. Undoubtedly such circumstances do occur, but the likelihood of chronic carrier underestimates of service requirements seems small. Indeed, there would have to be ex- tremely limited information flows and a fairly constant flow of