How might you determine if inter-modal competition (competition by other modes of transportation) is sufficient to discipline the sole provider of rail transportation between a coal mine and its customers?
|||I think main measure could include substitution effect in methods of delivery. If rail-road start to loose share of delivery then it really is sufficient (though total transported volume dynamics should be considered too). Another question could emerge here - degree of sufficiency, e.g. speed of reactions in alternative transportation methods and share distribution dynamics, price reactions, etc.
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