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.
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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.
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Corporate Authors:
Cross (Richard B) Company
Oxford, Indiana, United States 47971 -
Authors:
- Altonji, J C
- Publication Date: 1976
Media Info
- Pagination: p. 379-87
- Serial:
Subject/Index Terms
- TRT Terms: Analysis; Competition; Costs; Economic analysis; Forecasting; Freight traffic; Freight transportation; Mode choice; Motor carriers; Rate making; Regulations; Traffic forecasting; Transportation modes; Transportation policy
- Identifier Terms: U.S. Interstate Commerce Commission
- Uncontrolled Terms: Cost analysis
- Geographic Terms: United States
- Old TRIS Terms: Government regulations; National transportation policies
- Subject Areas: Economics; Finance; Freight Transportation; Law; Motor Carriers; Policy; Railroads;
Filing Info
- Accession Number: 00142941
- Record Type: Publication
- Report/Paper Numbers: Proceeding
- Files: TRIS
- Created Date: Dec 15 1976 12:00AM