OPTIMAL PRICING OF RAIL INTERMODAL FREIGHT: MODELS AND TESTS

E K Morlok · Tyler Smith

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transportation and logistics systems Maritime Ports and Logistics Transport and Economic Policies

Abstract

This report presents the results of research into the pricing of intermodal rail-truck service in competition with over-the-road truck service. Various optimization models are developed that incorporate different assumptions regarding the mode choice behavior of shippers (using minimum logistics cost and logit formulations), intermodal costs, and trucking network structure. Test applications to a corridor are performed. The primary conclusion is that this approach holds much promise, but that an actual test on a carrier's network using data from its marketing department is necessary to assess the applicability of this approach.

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2024A choice-driven service network design and pricing including heterogeneous behaviors

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