IN DEFENSE OF THE LONG-HAUL/SHORT-HAUL DISCRIMINATION

Discriminatory pricing by railroads may be better than marginal cost pricing with a subsidy of the resulting losses, since it gives the railroad correct incentives for deciding what rail lines to build. The argument, applied to long-haul/short-haul discrimination, shows that its prohibition may lead to non-optimal construction decisions.

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  • Corporate Authors:

    American Telephone and Telegraph Company

    195 Broadway
    New York, NY  United States  10007
  • Authors:
    • Friedman, D D
  • Publication Date: 1979

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00312427
  • Record Type: Publication
  • Source Agency: Engineering Index
  • Files: TRIS
  • Created Date: Aug 5 1980 12:00AM