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Ramsey Pricing by US Railroads. Can it exist?

Ramsey Pricing by US Railroads. Can it exist?

The author criticises the reference to Ramsey pricing in a recent decision by the Interstate Commerce Commission on charges for transport of coal. He finds that Ramsey pricing is suitable for public finance or for nationalised industries, but cannot be applied after deregulations.

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Optimal Public transport Price and Service Frequency

Because values of time and passenger behaviour depend on the level of frequency it is found that: (1) in urban public transport there may be one low-deficit local optimum and one high-deficit local optimum, one of which is global; (2) contrary to what might be expected, optimal financial deficit per passenger is typically larger for high frequency services than for low-frequency services; (3) the optimal off-peak may exceed the optimal peak price.

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