This paper surveys the economic approach to rational transport demand. Rationality is shown as the situation where willingness to pay is higher than the social marginal cost. Transport demand cannot be rational in all circumstances because of the flat structure of pricing. Correcting pricing inefficiencies is not easy and the author concludes that traditional instruments for correcting have been almost fully exploited. Optimal prices will probably be different for different available capacities, and each situation requires separate evaluation. The author notes that pricing practice in Europe differs from theoretical economic principles. For the covering abstract see ITRD E118367.
Abstract