| Table of Contents CHAPTER 1 Why Study Transportation Economics? Economics Is about Common Traits Examples of Policies Guided by Transport Economics Truck Taxes Straits of Gibraltar Tunnel Getting Trucks out of Alpine Valleys Paying for Docks and Warehouses in Port Klang High-Speed Rail Projects Solutions for Traffic Jams International Airline Alliances How to Use This Book PART I TRANSPROTATION DEMAND CHAPTER 2 The Source of Transportation Demand Expenditure on Transportation Demand, Elasticity, and Expenditure Transportation Demand Is Derived Demand: A Simple Example Deriving Transportation Demand with Multiple Modes, Origins, and Destinations Ton-Miles, Passenger-Miles, and Related Price Indexes Determinants of the Elasticity of Demand for a Mode of Transportation Factors That Shift Demand for a Mode of Transprotation Long-Run Determinants of the Demand for Transportation History and Geography Economic Determinants of Plant Locations Urban Location Decisions Conclusion CHAPTER 3 Demand for Freight Transportation The Logic of Econometric Demand Estimations Measurements of Freight Demand Elasticities Demand for Shipments of Hard Red Spring Wheat from North Dakota to Minneapolis and Duluth Other Factors Affecting Freight Demand Changes in Freight Demand Resulting from Changes in Market Areas Why Are There So Few Freight Transport Demand Elasticity Estimates? Data Availability Non-Random Price Setting The Complexity of the Problem Transferability Conclusion CHAPTER 4 The Demand for Passenger Transportation The Demand for Private Transportation Private Air Transportation The Demand for Urban Public Transportation Passenger Facility Demand Forecasting Trip Generation Trip Distribution Mode Selection Route Selection The Demand for Intercity Passenger Transportation Conclusion PART II TRANSPORTATION COSTS CHAPTER 5 Transportation Cost Concepts The Fundamental Concept of Costs: Opportunity Cost Opportunity Costs and Expenditures Sunk Costs and Under-valued Assets Implicit Costs and Shadow Prices External Costs Transportation Cost Classifications Fixed Facilities Costs Vehicle Costs The Costs of Operation The Shape of Economic Costs The Effect of Lumpy Facilities A Simple Example of Transportation Costs Network Economies The Cost of Expanding a Network Marginal and Average Costs in a Network Cost Traceability Economies of Scope Measuring Opportunity Costs Accounting Cost Econometric Costing Conclusion CHAPTER 6 The Costs of Fixed Facilities Highways Highway Expenditures The Effect of Traffic Level and Mix on Highway Construction Costs The Effect of Traffic Level and Mix on Highway Repair Costs Non-Assignable Costs Railroads Measuring the Cost of Fixed Railroad Facilities Air Facilities The Air Traffic Control System Airport Expenses Water Transport Channel Improvements Port Costs Pipelines Conclusion CHAPTER 7 Transport Vehicle Costs Fixed and Variable Costs of Vehicle Owning Automobiles The Costs of Purchasing and Owning Automobiles Trucks The Diversity of the Trucks and Truckers The Costs of Owning Trucks Public Transit Railroads Railroad Vehicle Stocks Problems of Railroad Equipment Interchange The Cost of Owning Railroad Equipment Ships, Boats, and Barges Deep Sea Ships Inland River and Canal Boats Airlines Conclusion CHAPTER 8 The Costs of Operating Transport Vehicles The Costs of Operating Railroad Trains The Cost of Individual Movements The Cost of Operating All Railroad Services Economies of Size versus Economies of Density The Costs of Operating Trucks Costs of the Truckload and Less-than-Truckload Industries Econometric Estimates of Scale Economies in Trucking Air Carrier Operations Costs Flight Operations Costs Passenger Service Costs and Load Factors Scale Economies in Aircraft Operations Operating Costs of Water Transport Economies of Ship Size Economies of Fleet Size Automobile Operating Costs Automobile Congestion Costs Transit Operating Costs Conclusion PART III ECONOMIC PRINCIPLES FOR TRANSPORT PRICING CHAPTER 9 Transportation Investment and Disinvestment Investment and Disinvestment in Vehicles Disinvesting in Vehicle Stocks Principles of Private Investment Criteria for Private Investment and Disinvestment in Fixed Facilities Public Evaluation of Transport Investments Net Social Welfare Investment in Public Freight Facilities Investment in Public Passenger Facilities Conclusion CHAPTER 10 Efficient Pricing The Efficiency Principle The Golden Rule for Pricing to Achieve Economic Efficiency Efficient Prices and Vehicle Costs The Price of Using Vehicles for One-Way Trips: Back-Haul Pricing Efficient Prices and Vehicle Operating Costs Efficient Prices and Congestion Tolls Practical Problems in Implementing Congestion Tolls Efficient Pricing and Fixed Facilities Costs Conclusion CHAPTER 11 Paying for Use of Transport Facilities Familiar Tools for Allocating Fixed Costs among Multiple User Groups The Fully Allocated Cost Standard Peak-Load Pricing Subsidy-Free Pricing Rules Subsidy-Free Prices Defined Incentives to Invest and Disinvest under Subsidy-Free Pricing Rules An Example of Subsidy-Free Pricing to Allocate Fixed Facilities Costs Adapting the Rule to Disequilibrium Positions Allocating Vehicle Costs to Passenger-Miles and Ton-Miles Allocating Residual Fixed Costs Conclusion PART IV GOVERNMENT REGULATION OF TRANSPORTATION CHAPTER 12 Market Power in Transportation A Pure Fixed Facilities Monopoly Classic Simple Monopoly Pricing Market Segmentation Pricing Two-Part Tariffs Promotions and Tie-Ins Economist's Advice The Valuation of Facilities Distributing Fixed Costs Recognizing and Controlling Market Power Fully Integrated Operators: Railroads Fully Unintegrated Commercial Vehicle Operators (Truckload Motor Carriers, Charter Planes and Buses, Charter Barge Operators, Tramp Tankers) Partially Integrated Vehicle Operators (LTL Motor Carriers, Scheduled Airlines, Buses, Container Liners) Conclusion CHAPTER 13 Regulation of Market Power in Transportation What Did Regulation Control? Route Structure The Regulated Rate Structure Regulation of Operations Other Aspects of Transportation Industries Covered by Regulation Criteria for Regulatory Decisions Advantages to Regulated Modes The Trucking Industry The Airline Industry Unmasking the Beneficiaries of Regulation The Railroad Industry The Current State of Transport Regulation The Effects of Deregulation Railroad Deregulation Motor Carrier Deregulation Airline Deregulation Deregulation's Lessons about the Control of Market Power in Transportation Alternative Mechanisms for Controlling Market Power in Transportation Conclusion CHAPTER 14 Regulation of the Social Costs of Transportation The Economic Analysis of Social Regulation |