Networks and Spatial Economics

, Volume 6, Issue 1, pp 25–38

Preliminary Insights into Optimal Pricing and Space Allocation at Intermodal Terminals with Elastic Arrivals and Capacity Constraint

Article

Abstract

This paper discusses derivations, and implications of, formulae to compute optimal space allocation and pricing for storage at container terminals. The case discussed in the paper considers elastic arrivals and container dwelling times, which is a more general version of the case considered by the authors in their first publication on the subject. In general terms, the optimal prices have three components that capture the different facets of the process. The first element captures the combined effect of willingness to pay and marginal cost, i.e., the classic solution after Ramsey (1927). The second element represents the contribution of the capacity constraint, i.e., the element introduced in Holguín-Veras and Jara-Díaz (1999). The third element captures the role of elastic arrivals and represents the main contribution of this paper. The role of the cost structure is also analyzed.

Keywords

Optimal pricing Price differentiation Container transportation 

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References

  1. Holguín-Veras J, Jara-Díaz S (1999) Optimal space allocation and pricing for priority service at container ports. Transp Res Part B 33(2):81–106CrossRefGoogle Scholar
  2. Karush W (1939) Minima of functions of several variables with inequalities as side conditions. M.S. thesis, Department of Mathematics, University of ChicagoGoogle Scholar
  3. Kuhn HW, Tucker AW (1951) Nonlinear programming. In: Neyman J (ed) Proceedings of the Second Berkeley Symposium, University of California, Berkeley, pp 481–492Google Scholar
  4. Ramsey F (1927, March) A contribution on the theory of taxation. Econ J 37:47–61Google Scholar

Copyright information

© Springer Science + Business Media, LLC 2006

Authors and Affiliations

  1. 1.Department of Civil and Environmental Engineering, JEC 4030Rensselaer Polytechnic InstituteTroyUSA
  2. 2.Departamento de Ingeniería CivilUniversidad de ChileSantiagoChile

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