Different discriminate price strategy in transportation enterprise

This paper used microeconomics method to analyze carrier's behavior in different structural market of transportation. The phenomenon that the imperfect competitor and monopolist usually make use of market power to maximize its benefits expresses that a firm's market power is decided by the demand flexibility and the number of substitutes. Imperfect competitor can make use of different discriminate price strategy based on special circs to maximize its benefits. Railway enterprises, which need a great of fix cost, but comparatively small part of variable cost, also can seek optimum price combination by using discriminate price strategy. If a railway enterprise want to make use of discriminate price strategy rationally, it must to subdivide the market it faced, estimate the demand flexibility of each segment market and the number of substitute, and the short-term cost function of each product, of course difference in product is very important.