A model of the objective of the United States Congress is proposed regarding the operation and expansion of the interoceanic waterway linking the Atlantic and Pacific Oceans. Due to Panama's conflicting objectives, this model divides the world into two communities, the Republic of Panama and the rest of the world. The congressional objective is then hypothesized to be complete economic efficiency with regard to the rest of the world. Economic efficiency requires that the toll policy be consistant with marginal cost pricing, and that expansion decisions be based on the optimum allocation of resources. Due to wide varience in future traffic estimates, a systems approach to the expansion decision is proposed as the most flexible and efficient method of consideration. Specific relationships are offered for marginal cost and traffic demand, and used in the program example. A dynamic programming algorithm is used to show the proper decisions for all possible situations in each decision period.

  • Corporate Authors:

    Massachusetts Institute of Technology

    Department of Ocean Engineering, 77 Massachusetts Avenue
    Cambridge, MA  United States  02139
  • Authors:
    • Lingley, G S
  • Publication Date: 1973-1

Subject/Index Terms

Filing Info

  • Accession Number: 00048361
  • Record Type: Publication
  • Source Agency: Massachusetts Institute of Technology
  • Report/Paper Numbers: MS Thesis
  • Files: TRIS
  • Created Date: Nov 14 1974 12:00AM