ABSTRACT
This chapter aims to provide the overall context of transportation economics within which concepts and principles and analyzes by economists. The mode of transportation refers to the general form of transport. There are five modes: railroad, highway, air, water, and pipeline. The economist's interest in transportation was aroused by the development of railroads. Transportation is at all times a very visible activity, and, therefore, nearly every transportation issue quickly becomes a public and political issue. Transportation economics is primarily concerned with three main areas: investment decisions in transport; allocation of resources in transportation; and the role and impact of government in transportation. The more complex and segmented the structure of the labor force engaged in transport is, the more vulnerable the system will be to disruption by the actions of a few. The chapter looks at the logistics of industries and firms that were the customers of the transport industry and focuses on operations research and systems analysis.
