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Title:

PRICING TOFC SHUTTLE TRAINS: AN EQUILIBRIUM ANALYSIS

Accession Number:

00308525

Record Type:

Component

Availability:

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Order URL: http://worldcat.org/issn/03611981

Abstract:

The determination of the most profitable pricing scheme for a freight transportation service poses difficult analytical problems. Little is generally known about the demand elasticities of a specific transportation market. The problem is especially critical in planning a new service. In this case, there will be no past experience to provide guidance and no present demand to use as a "base case" for sensitivity analysis, yet a mistake in pricing could lead to a costly failure. This paper discusses a pilot pricing study of a high-quality trailer-on-flatcar shuttle train service between three pairs of U.S cities. The study is an illustration of how demand and cost models may be used in an equilibrium framework to determine optimal price. The demand model simulates the decisions of individual potential users of the service. Thus, it has the potential of providing a much more reliable appraisal of the likely market response to a price-service offering than more conventional methods, including most econometric models. The equilibrium analysis technique illustrated in this report is straightforward and could be profitably applied to many types of carrier marketing planning. Production use of the technique will probably have to await the development of better industry data, production demand models, and techniques for dealing with entire networks. (Author)

Supplemental Notes:

Publication of this paper sponsored by Committee on Intermodal Freight Transport. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.

Monograph Accession #:

01411552

Authors:

Samuelson, Ralph D
Roberts, Paul O

Pagination:

pp 2-6

Publication Date:

1979

Serial:

Transportation Research Record

Issue Number: 721
Publisher: Transportation Research Board
ISSN: 0361-1981

ISBN:

0309029716

Media Type:

Digital/other

Features:

Figures (4) ; References (4)

Old TRIS Terms:

Subject Areas:

Design; Economics; Freight Transportation; Highways; Railroads; Vehicles and Equipment

Files:

TRIS, TRB

Created Date:

Apr 22 1980 12:00AM

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