Estimating the Influence of Service Quality on Transportation Demand

Marc A. Johnson

American Journal of Agricultural Economics, 1976, vol. 58, issue 3, 496-503

Abstract: Following a theoretical justification for considering service quality as a demand determinant based upon conventional derived demand analysis, an empirical procedure is developed for estimating the response of demand and modal selection probability to changes in service quality. The estimation technique suggested is similar to that used in the measurement of hedonic price indices, permitting a subjective evaluation of quality factors by shipping managers. An empirical demonstration suggests that transport demand responsiveness to transport service quality is inelastic for country grain elevators.

Date: 1976
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:58:y:1976:i:3:p:496-503.

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