SOME OBSERVATIONS REGARDING VALUE-OF-SERVICE PRICING IN TRANSPORTATION

The case for and against value-of-service pricing is discussed. While demand pricing is seen by some as resulting in subsidies to some commodities and resulting in misallocation of resources, cost-oriented rates involve cost allocations of prodigious complexity in the transport industries. Demand pricing is seen as one means of allocating fixed costs on a "value received" basis and assuring that the plant is used more efficiently. Value-of-service pricing makes possible service to marginal locations with rates representing an indirect subsidy. While commodity rates do not ignore a commodity's value, they are more cost-oriented than class rates. Additional research is needed in the area of traffic, volume and rates charged.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/1588960
• Corporate Authors:

  American Society of Traffic and Transportation

  547 West Jackson Boulevard
  Chicago, IL  United States  60606
• Authors:
  • Davis, G M
  • Combs, L J
• Publication Date: 1975

Media Info

• Features: Figures; Tables;
• Pagination: p. 49-58
• Serial:
  • Transportation Journal
  • Volume: 14
  • Issue Number: 3
  • Publisher: American Society of Transportation and Logistics
  • ISSN: 0041-1612
  • Serial URL: https://scholarlypublishingcollective.org/psup/transportation-journal

Subject/Index Terms

• TRT Terms: Commodities; Profitability; Rates; Tariffs
• Old TRIS Terms: Class rates; Commodity rates; Profitability measurement
• Subject Areas: Economics; Railroads;

Filing Info

• Accession Number: 00095286
• Record Type: Publication
• Files: TRIS
• Created Date: Jul 15 1975 12:00AM