MISALLOCATIVE EFFECTS OF VALUE-OF-SERVICE RAIL GRAIN RATES

Value-of-service, based on demand for transportation, rather than cost-of-service had traditionally been the rate-making approach used by railroads even before ICC regulation that has since sanctioned route and commodity rate discrimination. A study of wheat and barley rates in the Midwest indicates a switch to cost-of-service would reduce truck share, cut shipper costs, reduce rail revenues, alter railroad traffic mix, and make trucks function as feeders to rail service. More efficient transportation and allocation of resources would result.

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  • Corporate Authors:

    American Society of Traffic and Transportation

    547 West Jackson Boulevard
    Chicago, IL  United States  60606
  • Authors:
    • Martin, M V
  • Publication Date: 1979

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Filing Info

  • Accession Number: 00196103
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 31 1979 12:00AM