Abstract
The economic history of the railroads and the problems faced by them are in many ways unique. However, many of the railroads’ problems are the outgrowth of failure to apply pricing principles which have a universal applicability.
Faulty pricing practices, including inadequate attention to customer alternatives, pricing improperly related to the railroad's own costs, and failure to use price as a sales incentive to reduce costs explain many of the railroads’ present difficulties. Dr. Dean shows how adoption of sound pricing principles could bring about competitive changes with far-reaching effects.
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