Market Area Sensitivity as a Measure of Railroad-Barge Competition in the Oklahoma-Kansas Wheat Transportation Market*

Marc A. Johnson and Gary M. Mennem

Journal of Agricultural and Applied Economics, 1976, vol. 8, issue 2, 115-120

Abstract: New directions in national transportation policy have rekindled interest in transportation market structure. The Department of Transportation policy goal to equalize competitive opportunities between modes requires greater understanding of intermodal competitiveness in terms of inherent advantages of each mode in serving particular transportation markets. Flexible railroad ratemaking in the absence of market dominance, provided for in the Railroad Revitalization and Regulatory Reform Act of 1976, requires measures of intermodal competitiveness to define market dominance.This article serves two purposes. The first is to develop market area sensitivity as a tool for distinguishing competitive from noncompetitive transportation market structures.

Date: 1976
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