Abstract
DEMANDS FOR RAILWAY, HIGHWAY AND WATERWAY MODES ARE DERIVED FROM PRODUCTION AND DISTRIBUTION TECHNOLOGY AND ESTIMATED FROM TIME-SERIES DATA OF CANADIAN INTERCITY FREIGHT TRANSPORT, 1945-75. THESE ARE, IN TURN, USED TO MEASURE PRICE ELASTICITIES OF DEMAND. BOTH OWN-PRICE ELASTICITIES AND POSSIBILITIES OF COMPETITION BETWEEN MODES HAVE INCREASED STEADILY OVER TIME. HIGHWAY MODES ESSENTIALLY COMPLEMENTED RAILWAY SERVICES UNTIL THE LATE 1950S, AND THEREAFTER BECAME INCREASINGLY COMPETITIVE. SHIPPERS ARE FOUND TO RESPOND TO PRICE CHANGES WITH SYSTEMATIC LAG, WITH MEAN OF EIGHT MONTHS AND VARIANCE OF THIRTEEN MONTHS.(Author/publisher).