THE ECONOMIC JUSTIFICATION FOR DEMAND LEVELING PRICING IN THE RAIL INDUSTRY

The paper provides a non-technical discussion of peak-load pricing principles and their application to accomplish demand leveling in the rail industry. The economic justification for demand-responsive rail rates is explained and the improvements which would result from their implementation is discussed. The economic impact of existing regulatory pricing policies on freight car utilization is examined and evaluated. Results of the paper show that poor pricing principles have generated substantial inefficiencies for the rail industry and that freight car utilization would be greatly improved by flexible, demand-responsive rail rates.

  • Corporate Authors:

    Federal Railroad Administration

    Office of Policy and Program Development, 1200 New Jersey Avenue, SE
    Washington, DC  USA  20590
  • Authors:
    • BERGLUND, M F
  • Publication Date: 1977-12

Media Info

  • Pagination: 20 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00196927
  • Record Type: Publication
  • Source Agency: National Technical Information Service
  • Report/Paper Numbers: FRA-OPPD-78/5 Final Rpt.
  • Files: TRIS, USDOT
  • Created Date: Aug 28 1979 12:00AM