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Joint and Overhead Cost and Railway Rate Policy

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  • Donald H. Wallace

Abstract

I. Introductory: definitions, 583. — Issue of discrimination versus uniformity only resolvable by precise distinction between joint and overhead cost, 585. II. Joint and overhead cost distinguished, 586; — joint cost, overhead cost, and monopoly all influence pattern of discrimination, 589; — true instances of joint supply, 592. — III. With overhead cost alone discrimination should be adjusted to the degree of utilization, 594; — the case of a single road with a given investment, 595; — proper and improper rate policy, 597; — marginal cost a useful tool for determining proper degree of discrimination, 599. — IV. Problems presented by discontinuity in expansion, 602; — different degrees of discontinuity, 604. — V. Qualifications of the proper rate policy for: different divisions, 609; — competing routes, 611. — VI. Complications presented by time jointness, 613; — unlikely that discrimination should ever give way wholly to uniformity, 614; — stability, 616.

Suggested Citation

  • Donald H. Wallace, 1934. "Joint and Overhead Cost and Railway Rate Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 48(4), pages 583-619.
    • Handle: RePEc:oup:qjecon:v:48:y:1934:i:4:p:583-619.
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