AN EVALUATION OF THE RAIL RATE TO VARIABLE COST RATIO AS A CRITERION FOR MARKET DOMINANCE

K. Lisa Grove and Robert J. Hauser

No 278937, 1984 Annual Meeting, August 5-8, Ithaca, New York from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

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.

Keywords: Consumer/Household Economics; Marketing (search for similar items in EconPapers)
Pages: 14
Date: 1984-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea84:278937

DOI: 10.22004/ag.econ.278937

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