Efficient Access Pricing for Rail Bottlenecks
is essentially a “think piece,” drawing on extensive scholarly economic literature on the issue of access pricing for telecommunications bottlenecks. Two approaches are examined, one of which, The Efficient Component Pricing Rule (ECPR) is recommended for pricing competitive access to rail bottlenecks, i.e., captive shippers. The other approach, termed Total Element Long-run Incremental Cost (TELRIC) is rejected as being unworkable in the “constrained (differential) pricing” framework of current rail rate regulation.
The Federal Railroad Administration’s Office of Policy and Program Development sponsored the following document.
Click here for document