1. Railroad pricing in captive markets: an empirical study of North Dakota grain rates
- Author
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Koo, Won W., Tolliver, Denver D., and Bitzan, John D.
- Subjects
Railroads -- Prices and rates ,Grain -- Transportation ,Business ,Business, international ,Transportation industry - Abstract
Railroad pricing behavior in shipping agricultural commodities from North Dakota to domestic and export destinations is examined by using an econometric technique with cross-sectional data from 1984 to 1989. North Dakota is a typical captive market where intermodal and intramodal competition is highly limited. However, intermodal and intramodal competition are significant factors that influence rail rates. The findings of the study suggest that the degree of captivity varies within the state. In addition, rail rates are very sensitive to distance, volume, and weight per car. This study also indicates that rail rates for wheat and barley are higher than those for corn and soybeans, which are produced heavily in water competitive regions. (Reprinted by permission of the publisher.), I. Introduction Railroads are important for shipping agricultural commodities from producing regions to domestic processing plants and export locations in the United States. In 1989, over 50 percent of U.S. [...]
- Published
- 1993