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Street-Railway Rates, with Especial Reference to Differentiation

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  • G. P. Watkins

Abstract

I. The principle of differentiation: Apparently opposite characteristics of steam-railroad and street-railway rates, 624, — Summary of principles at the foundation of the differential rates of steam railroads, 625. — Their relation to branch-line deficits, 626. — II. Character of the street-railway flat rate: The street-railway flat rate, equally with the differential rates of steam roads, is not adjusted to cost, 628. — The nickel is the convenient price for a service that will be generally demanded only if the price be small, 629. — This price once adopted, concessions and adjustments to new developments have more easily been made elsewhere than in the rate, 630. — Costs of street-railway carriage vary greatly, 634. — Even the zone system does not adjust rates to costs, 635. — Passenger business in general is less susceptible to external differentiation, 636. — The responsiveness to lowered rates of the demand for street-railway service is about maximal for all classes at the nickel, 637. — Importance of combining "lean" with "fat," 639. — III. Certain applications of differentiation in street-railway practice: The distance limit of the ride from the center of the city to be had for 5 cents is not fixed by the prime cost of the particular service, 640. — The growth of a comprehensive system does not necessarily mean an increase in the average length of ride, 642. — Rapid transit lines may be expected to preserve the 5-cent rate to distant residence districts, 643. — Transfers are an accident of the passenger trip which should not ordinarily affect the rate, tho joint-rates may well be higher, 645. — Differentiation in the quality of service may be economically justifiable, 647. — Overcrowding at rush periods is not to be determined by merely physical standards, 648.

Suggested Citation

  • G. P. Watkins, 1911. "Street-Railway Rates, with Especial Reference to Differentiation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 25(4), pages 623-649.
  • Handle: RePEc:oup:qjecon:v:25:y:1911:i:4:p:623-649.
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    Cited by:

    1. Snir, Avichai & Chen, Haipeng (Allan) & Levy, Daniel, 2022. "Zero-Ending Prices, Cognitive Convenience, and Price Rigidity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Forthcomi, pages 1-39.
    2. Knotek II, Edward S., 2008. "Convenient prices, currency, and nominal rigidity: Theory with evidence from newspaper prices," Journal of Monetary Economics, Elsevier, vol. 55(7), pages 1303-1316, October.
    3. Edward S. Knotek, 2011. "Convenient Prices and Price Rigidity: Cross-Sectional Evidence," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 1076-1086, August.

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