ESTIMATING MISALLOCATION OF TRAFFIC BETWEEN RAIL AND TRUCK TRANSPORT

Properties of "least cost" studies as methods of estimating the extent and penalties of misallocation of traffic are evaluated. A probabilistic model of traffic allocation is developed to reflect evidence that rail and truck full costs for a given distance vary considerably for individual shipments. The "least cost" method is described and its assumptions explained. The probabilistic market share model is used to demonstrate that "least cost" methodology is biased as an estimator of traffic misallocation and social losses. Evidence about the average rail cost advantage is presented. A new approach based on the probabilistic market share model is described.

  • Supplemental Notes:
    • Presented at the Seventeenth Annual Meeting of the Transportation Research Forum, Beyond the Bicentennial: The Transportation Challenge, held in Boston, Massachusetts, October 28-30, 1976.
  • Corporate Authors:

    Cross (Richard B) Company

    Oxford, Indiana,   USA  47971
  • Authors:
    • Altonji, J C
  • Publication Date: 1976

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Filing Info

  • Accession Number: 00142941
  • Record Type: Publication
  • Report/Paper Numbers: Proceeding
  • Files: TRIS
  • Created Date: Dec 15 1976 12:00AM