|Vol I, Issue 5 May 2005|
Study Compares Fully Spatial Equilibrium Model To Traditional Corps Planning Model
The model allows geographically dispersed shippers to choose where and how to ship and how much to produce both in the short- and long-run. Because rail and barge/truck rates determine equilibrium market areas, the model allows for railroad prices to adjust.
The model is contrasted with the traditional Corps of Engineers planning model which assumed that demand is perfectly inelastic up to a threshold point above which demand is assumed to shift completely to rail. The study also assesses possible sources of over-estimation and under-estimation of benefits within the Corps model when compared to the fully spatial model.
Profile of Barge Industry Developed
The study evaluates the current structure, conduct and performance of the industry in an effort to provide a stronger knowledge base and enhance Corps planning efforts. The study is intended as a first step in addressing a scarcity of published information on the carrier industry, according to the researchers.
NETS Research Presented at International Industrial Organization Conference
NETS web site: www.corpsnets.us
Download the reader for PDF documents.
Navigation Economic Technologies Program, US Army Corps of Engineers