JOINT FREIGHT RATE AND SERVICE QUALITY SHIPPER SURPLUS - A UNIT DEMAND DEVELOPMENT

This paper is concerned with measuring the aggregate economic benefit shippers, and ultimately society, might derive from joint changes in freight rate and service quality. A progression of discrete and continuous shipper surplus models are developed using unit-demand consumer surplus as a prototype. It is shown that the partition of shipper surplus into freight rate and service quality components depends on the path of rate and service quality changes, and therefore if the path is not known, there is not basis for such a partition. The paper closes by specifying a prerequisite subproblem for maximizing total surplus (the sum of shipper surplus and carrier profit).

Language

  • English

Media Info

  • Pagination: p. 162-182

Subject/Index Terms

Filing Info

  • Accession Number: 00726822
  • Record Type: Publication
  • Report/Paper Numbers: Volume 1
  • Files: TRIS
  • Created Date: Oct 9 1996 12:00AM