ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Rail Pricing Demystified

groups considered, in the case of coal, fertilisers and foodgrains the bulk of the movement is on government account. (As a matter of fact, a substantial amount of the coal transported is for the railways' own use.) For three other commodity groups, viz, iron ore, iron and steel and POL products, the shippers would be primarily large public and private sector units. Thus, for at least six of the eight groups considered, the applicability of the underlying behavioural model is suspect. Even in the case of a group like manufactures, it is doubtful whether the choice of quantum shipped and length of haul can be smoothly adjusted to variations in conditions bearing on the cost or demand of the shippers' product. Habit persistence seems to be a major characteristic of the demand for freight services by private shippers

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