The paper provides a non-technical discussion of peak-load pricing principles and their application to accomplish demand leveling in the rail industry. The economic justification for demand-responsive rail rates is explained and the improvements which would result from their implementation is discussed. The economic impact of existing regulatory pricing policies on freight car utilization is examined and evaluated. Results of the paper show that poor pricing principles have generated substantial inefficiencies for the rail industry and that freight car utilization would be greatly improved by flexible, demand-responsive rail rates.


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    Title :

    The Economic Justification for Demand Leveling Pricing in the Rail Industry


    Contributors:

    Publication date :

    1977


    Size :

    20 pages


    Type of media :

    Report


    Type of material :

    No indication


    Language :

    English




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