A competitive equilibrium exists at the prices shown in Table 4. In competitive equilibrium, the principal pays a single price for all units moved along a particular route. The price along a particular route is such that the principal's demand for transportation, as derived from marginal cost savings, exactly equals the aggregate supply of transportation, as derived from marginal transportation costs. The equilibrium shown supports the least-cost allocation of contracts. The movements of units are identical to those in least-cost vertical integration. Because the principal does not capture the transporters' surplus, the total cost to the principal is much higher than in vertical integration