Discrimination at the Ports
In transport, the problem of demand exceeding capacity often occurs with congestion as a result. The resulting delays impose substantial efficiency loss. Price discrimination by peak load pricing is a well-recognized way of handling the problem. Such schemes are, however, often politically controver...
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crsagepubl:10.3141/2606-11 2023-05-15T17:43:35+02:00 Discrimination at the Ports Welfare Effects of Giving Commuters Priority Hanssen, Thor-Erik Sandberg Mathisen, Terje Andreas 2017 http://dx.doi.org/10.3141/2606-11 http://journals.sagepub.com/doi/pdf/10.3141/2606-11 en eng SAGE Publications http://journals.sagepub.com/page/policies/text-and-data-mining-license Transportation Research Record: Journal of the Transportation Research Board volume 2606, issue 1, page 79-85 ISSN 0361-1981 2169-4052 Mechanical Engineering Civil and Structural Engineering journal-article 2017 crsagepubl https://doi.org/10.3141/2606-11 2022-04-14T04:38:43Z In transport, the problem of demand exceeding capacity often occurs with congestion as a result. The resulting delays impose substantial efficiency loss. Price discrimination by peak load pricing is a well-recognized way of handling the problem. Such schemes are, however, often politically controversial because they might disadvantage vulnerable groups of passengers. An alternative is the use of a priority scheme. In this paper, a framework positioned within the traditions of cost–benefit analysis is established to examine the welfare effects of granting one group of passengers priority on transport modes characterized by limited capacity and low frequency. The case is a trial arrangement initiated at a rural car ferry crossing in Northern Norway intended to ensure that local commuters (traveling to and from work) can board for the desired departure. With respect to pricing, road authorities have a stated objective that fares and discounts at ferries be equal throughout the nation. Hence, for local political authorities to ensure local commuters a predictable transport alternative by price discrimination is neither desirable nor legal. The empirical evidence demonstrates that loss of social welfare caused by congestion problems at a port can be potentially reduced by introducing such a priority scheme. Recommendations are provided in relation to the number of users required for the priority arrangement to render a positive net benefit for society. This ex ante information is useful for policy makers when they are evaluating whether to initiate such priority schemes to reduce efficiency loss in passenger transport markets. Article in Journal/Newspaper Northern Norway SAGE Publications (via Crossref) Norway Transportation Research Record: Journal of the Transportation Research Board 2606 1 79 85 |
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Open Polar |
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SAGE Publications (via Crossref) |
op_collection_id |
crsagepubl |
language |
English |
topic |
Mechanical Engineering Civil and Structural Engineering |
spellingShingle |
Mechanical Engineering Civil and Structural Engineering Hanssen, Thor-Erik Sandberg Mathisen, Terje Andreas Discrimination at the Ports |
topic_facet |
Mechanical Engineering Civil and Structural Engineering |
description |
In transport, the problem of demand exceeding capacity often occurs with congestion as a result. The resulting delays impose substantial efficiency loss. Price discrimination by peak load pricing is a well-recognized way of handling the problem. Such schemes are, however, often politically controversial because they might disadvantage vulnerable groups of passengers. An alternative is the use of a priority scheme. In this paper, a framework positioned within the traditions of cost–benefit analysis is established to examine the welfare effects of granting one group of passengers priority on transport modes characterized by limited capacity and low frequency. The case is a trial arrangement initiated at a rural car ferry crossing in Northern Norway intended to ensure that local commuters (traveling to and from work) can board for the desired departure. With respect to pricing, road authorities have a stated objective that fares and discounts at ferries be equal throughout the nation. Hence, for local political authorities to ensure local commuters a predictable transport alternative by price discrimination is neither desirable nor legal. The empirical evidence demonstrates that loss of social welfare caused by congestion problems at a port can be potentially reduced by introducing such a priority scheme. Recommendations are provided in relation to the number of users required for the priority arrangement to render a positive net benefit for society. This ex ante information is useful for policy makers when they are evaluating whether to initiate such priority schemes to reduce efficiency loss in passenger transport markets. |
format |
Article in Journal/Newspaper |
author |
Hanssen, Thor-Erik Sandberg Mathisen, Terje Andreas |
author_facet |
Hanssen, Thor-Erik Sandberg Mathisen, Terje Andreas |
author_sort |
Hanssen, Thor-Erik Sandberg |
title |
Discrimination at the Ports |
title_short |
Discrimination at the Ports |
title_full |
Discrimination at the Ports |
title_fullStr |
Discrimination at the Ports |
title_full_unstemmed |
Discrimination at the Ports |
title_sort |
discrimination at the ports |
publisher |
SAGE Publications |
publishDate |
2017 |
url |
http://dx.doi.org/10.3141/2606-11 http://journals.sagepub.com/doi/pdf/10.3141/2606-11 |
geographic |
Norway |
geographic_facet |
Norway |
genre |
Northern Norway |
genre_facet |
Northern Norway |
op_source |
Transportation Research Record: Journal of the Transportation Research Board volume 2606, issue 1, page 79-85 ISSN 0361-1981 2169-4052 |
op_rights |
http://journals.sagepub.com/page/policies/text-and-data-mining-license |
op_doi |
https://doi.org/10.3141/2606-11 |
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Transportation Research Record: Journal of the Transportation Research Board |
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2606 |
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1 |
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79 |
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85 |
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