Article

Received 04.11.2021

Revised 10.03.2022

Accepted 22.04.2022

Retrieved from Vol. 26, No. 2, 2022

Pages 22 -32

Bakalinsky, O., & Malitskiy, V. (2022). Update of the procedure for setting the price for the service for the use of freight cars of JSC «Ukrzaliznytsia» based on the approach of F. Ramsey. The National Transport University Bulletin, 26(2), 22-32. https://doi.org/10.33744/2308-6645-2022-2-52-022-032

Update of the procedure for setting the price for the service for the use of freight cars of JSC «Ukrzaliznytsia» based on the approach of F. Ramsey

Oleksandr Bakalinsky Vitalii Malitskiy

The aim of the study – updating the procedure for determining the price for the use of freight cars of JSC «Ukrzaliznytsia» by supplementing it with stages that implement pricing according to F. Ramsey. Determination of market factors influencing the setting of prices for the use of freight cars. Based on the analysis of the existing pricing practice according to Ramsey, the identification of probable threats in the possible application of this approach to pricing for the use of freight cars. Methods – analysis of the existing practice of Ramsey pricing, construction of algorithms of the existing and perspective pricing procedure for services on the use of freight cars in JSC «Ukrzaliznytsia». Results. The removal of freight car services from state regulation made it possible for JSC Ukrzaliznytsia to set prices for this service on its own. The pricing procedure developed and implemented by the company, which was based on the formation of prices on the basis of statistical information of previous periods, in market conditions did not give the desired result. To solve this problem, the authors proposed to update the pricing procedure based on the Ramsey theorem. The study showed that the total introduction of such an approach in rail freight transport will face insurmountable difficulties and seems unnecessary. Among the key threats are: possible increase in the price of the service for all market segments and reduction of aggregate demand, negative socio-economic effects, errors in estimating the elasticity of demand, competitors' prices, possible change in supply structure by price and type of cars. At the same time, applying this approach to local market segments will allow the company to respond in a timely manner to market reactions, actions of competitors and generate additional profits. For the practical implementation of this idea, the authors propose to develop a method for determining the individual elasticity of customer demand and to compare the effects of the old and new procedures. 

freight railway transportation; use of wagons; individual elasticity of demand; pricing for Ramsey
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https://doi.org/10.33744/2308-6645-2022-2-52-022-032