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An Evaluation Of The Rail Rate To Variable Cost Ratio As A Criterion For Market Dominance

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  • Grove, K. Lisa
  • Hauser, Robert J.

Abstract

It is shown that the optimal rate to variable cost ratio for rail shipments of grain from a central Illinois region can change considerably in response to stochastic changes in barge rates. The use of this ratio as a market dominance standard may be misleading, particularly during periods of high barge rates.

Suggested Citation

  • Grove, K. Lisa & Hauser, Robert J., 1984. "An Evaluation Of The Rail Rate To Variable Cost Ratio As A Criterion For Market Dominance," 1984 Annual Meeting, August 5-8, Ithaca, New York 278937, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea84:278937
    DOI: 10.22004/ag.econ.278937
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    File URL: https://ageconsearch.umn.edu/record/278937/files/aaea-1984-027.pdf
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    References listed on IDEAS

    as
    1. Wilson, William W., 1982. "Estimation of Demand Elasticities for Transportation Modes in Grain Transportation," Agricultural Economics Reports 23266, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Johnson, Marc A. & Mennem, Gary M., 1976. "Market Area Sensitivity As A Measure Of Railroad-Barge Competition In The Oklahoma-Kansas Wheat Transportation Market," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 8(2), pages 1-6, December.
    3. Berger, Donald W. & Nelson, David C., 1970. "An Analysis of the Elasticity of Demand for Rail Transportation of Hard Red Spring Wheat," Agribusiness & Applied Economics Report 101981, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Hauser, Rober J. & Neff, Steven A., 1984. "The Pricing Efficiency of the barge freight call session," 25th Annual Transportation Research Forum, Boston, Massachusetts, October 22-24, 1984 311697, Transportation Research Forum.
    5. Fuller, Stephen & Shanmugham, C. V., 1981. "Effectiveness of Competition to Limit Rail Rate Increases Under Deregulation: The Case of Wheat Exports from the Southern Plains," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(2), pages 11-19, December.
    6. Johnson, Marc A. & Mennem, Gary M., 1976. "Market Area Sensitivity as a Measure of Railroad-Barge Competition in the Oklahoma-Kansas Wheat Transportation Market," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 8(2), pages 115-120, December.
    7. Fuller, Stephen W. & Shanmugham, Chiyyarath V., 1981. "Effectiveness Of Competition To Limit Rail Rate Increases Under Deregulation: The Case Of Wheat Exports From The Southern Plains," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(2), pages 1-9, December.
    8. Hoffman, Linwood A. & Hill, Lowell D., 1980. "The Impact Of Demand-Sensitive Railroad Rates Upon The Storage And Transportation System For U.S. Feed Grains," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 278467, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Consumer/Household Economics; Marketing;

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