Abstract
AN EARLY ARTICLE SUGGESTED THAT THE CHANNEL TUNNEL SCHEME AS DETAILED WOULD HAVE CREATED TOO MUCH TERMINAL CAPACITY BY BEING BASED ON UNIFORM PRICING. IT WAS SHOWN HOW PEAK LOAD PRICING WOULD REDUCE OPTIMUM CAPACITY AND INCREASE PROFITS. THE PRESENT ARTICLE SHOWS THAT THE PREVIOUS ANALYSIS WAS BASED ON MODELS WHICH GAVE UNACCEPTABLY HIGH PRICES AND EXAGGERATED THE DIFFERENCE BETWEEN OPTIMAL CAPACITIES FOR PEAK-LOAD AND UNIFORM PRICING. THE AUTHORS PRESENT A REVISED MODEL AND NEW RESULTS ARE OBTAINED WHICH GIVE A BETTER CASE FOR PEAK LOAD PRICING. IT ALSO EXAMINES SOME VARIATIONS ON UNIFORM PRICING AND ALSO THE IMPLICATIONS FOR CAPACITY UTILIZATION OF VARIOUS PRICING SCHEMES. O.