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Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

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considered these costs in several fashions and demonstrated that they<br />

all result in the same solutions. However, in the next section, where<br />

we again consider two modes of transport with differing associated<br />

costs, it will be found necessary to handle these costs in a manner<br />

analogous to the transport rates. Hence, we now adopt that approach<br />

and define the total costs of transportation as the sum of the trans-<br />

port rate and the associated costs. This will allow us to retain a<br />

single and well-defined total demand <strong>for</strong> transportation function.<br />

Qualitative Analysis of the Two-Mode Two-Market Model<br />

In this section we shall present our transportation model in a<br />

more <strong>for</strong>mal manner and investigate the effects of controlled shifts in<br />

the functions. We will find that we are able to place an unambiguous<br />

sign upon all displacements of equilibrium and that in many instances<br />

it is possible to make statements regarding the relative sizes of<br />

these displacements.<br />

Assuming that a Modal-split does occur our two-mode model may<br />

be <strong>for</strong>mulated as<br />

(3.1) Q a ■ D(T c , AB) the derived total demand <strong>for</strong> trans-<br />

portation,<br />

(3.2) Ql ■ S i (TI)<br />

(3.3) <strong>Q2</strong> ° s 2 (Tr2)<br />

a<br />

(3.4) Ti Z1 (Q1)<br />

(3.5) Ta z 2 (Q )<br />

2 2<br />

(3.6) T c Tr Ta<br />

1 1 1<br />

(3.7) T1 + T;<br />

the supply of Mode One,<br />

the supply of Mode Two,<br />

associated costs <strong>for</strong> shipment by<br />

Mode One,<br />

associated costs <strong>for</strong> shipment by<br />

Mode Two,<br />

definitions of total transport costs,<br />

54

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