RAILROAD PRICING IN CAPTIVE MARKETS - AN EMPIRICAL-STUDY OF NORTH-DAKOTA GRAIN RATES

Railroad pricing behavior in shipping agricultural commodities from No rth Dakota to domestic and export destinations is examined by using an econometric technique with cross-sectional data from 1984 to 1989. No rth Dakota is a typical captive market where intermodal and intramodal competition is highly limited. However, intermodal and intramodal com petition are significant factors that influence rail rates. The findin gs of the study suggest that the degree of captivity varies within the state. In addition, rail rates are very sensitive to distance, volume , and weight per car. This study also indicates that rail rates for wh eat and barley are higher than those for corn and soybeans. which are produced heavily in water competitive regions.