International transport Essay Example | Topics and Well Written Essays - 1750 words

International transport - Essay Example car and bus travel) make estimating the demand for transportation facilities difficult (Wikipedia 2007). This can also reflect on the essential characteristics of the development of models which are to be utilized in estimations of consumer behavior in case of predicting the likely choices between the many non-similar goods available in the market involved in the industry. Daniel McFadden was awarded a Nobel Prize for his work in the development of an important branch of econometrics. Taking into account this marked difference in the general structure of this industry, subtle modifications of existing definitions, for the terms forming the basis of an economics oriented perspective are in order. For instance, the demand can be measured in terms of the number of journeys made or in total distance traveled. This type of an approach also results in an ambiguity, since the demand will vary as the points between which the journeys are undertaken are considered. However, for all practical issues, this will be sufficient. The units of measurement may be ‘passenger-kilometer for public transport or vehicle-kilometer of travel for private transport’ (Wikipedia 2007). Supply on the other hand may be calculated from the capacity of the various supply channels (modes of transport). The price of the goods is measured by the cost of travel, which includes money spent as well as the time expenditure. Here too, the details pertaining to the two points between which travel is carried out, i.e., the departure point and the destination is neglected, or generalized for uniformity. The study undertaken here takes into account the cases of two noted transport industries. The first is one of the most widely noted success stories in the history of the transport industry in recent times. The Indian Railway is the largest commercial employer in the world, having an