25 May WHAT ALTERNATIVES TO PRICE COMPETITION EXIST IN SUCH MARKETS?
W3 Discussion Forum A. Describe an oligopolistic market structure. What alternatives to price competition exist in such markets? Why would these alternatives be important to shippers? B. There is a correlation between transport costs, distance and modal choice that has for long been detected. It permits in understanding of why road transport is usually used for short distances railway transport for average distances and maritime transport for long distances. Deviations of modal choice according to the geographical setting are detected but these figures tend to show a progression of the range of trucking. Yet, intermodalism provides the opportunity to syndicate modes and find a less expensive alternative than an unimodal solution. It is also associated with greater average value of the cargo being transported since intermodal transportation is associated with more intricate and sophisticated commodity chains. Consequently, the effectiveness of contemporary transport systems rests as much on their capability to route freight than on their capability to transship it, but each of these functions have a price that must be condensed. What are your thoughts on this?
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