Figure 9: Comparison of MC Estimates - Overall Means Vs. Indiv. Rrs (Coal)

Appendix: Data Definitions and Sources, Detailed Revenue/MC Estimates, Intra-railroad Lengths of Haul, and Comparisons of Marginal Cost Estimates Table A1: Firms in the Data Set, with Merger Definitions

Atchison, Topeka & Santa Fe (ATSF) 1986-1995 - Merged into BN Burlington Northern (BN) 1986-2008 - From 1996-2008 includes merged ATSF, BN System Canadian National (CN) 1999-2008 - Formed with the Merger of ICG, GTW Chicago & Northwestern (CNW) 1986-1994 - merged into UP Consolidated Rail Corporation (CR) 1986-1997 - Merged into CSX, NS in 1999 (missing input price data in 1992) CSX Transportation (CSX) 1986-2007 - from 1999 - 2007 includes merged CSX, CR System Denver, Rio Grande & Western (DRGW) 1986-1993 - Merged into the SP Grand Trunk & Western (GTW) 1986-1998 - Merged with ICG into the CN Illinois Central Gulf (ICG) 1986-1998 - Merged with GTW into the CN Kansas City Southern (KCS) 1986-2008 (Missing input price data from 1992- 1994) Missouri-Kansas-Texas (MKT) 1986-1987 - Merged into UP Norfolk Southern (NS) 1986-2008 - from 1999-2008 includes the merged NS, CR System SOO Line (SOO) 1986-2008 Southern Pacific (SP) 1986-1996 - From 1990-1993 includes merged SP, SSW - From 1994 - 1996 includes merged SP, SSW, DRGW - Merged into UP (missing data on carloads by commodity in 1991-1992) Saint Louis, Southwestern (SSW) 1986-1989 - Merged into SP Union Pacific (UP) 1986-2008 - From 1988-1994 includes merged UP, MKT system - From 1995-1996 includes merged UP, CNW system - From 1997-2007 includes merged UP, SP system (missing data on carloads by commodity in 1995) TOTAL OBSERVATIONS = 222 Table A2: Data Definitions and Sources * Variable Source Cost Variable and Construction Real Total Cost (OPERCOST+ROIRD +ROILCM+ROICRS)/GDPPD OPERCOST Railroad Operating Cost (R1, Sched. 410, ln. 620, Col F) ROIRD Return on Investment in Road (ROADINV- ACCDEPR)*COSTKAP ROADINV Road Investment (R1, Sched 352B, line 31) ACCDEPR Accumulated Depreciation in Road (R1, Sched 335, line 30, Col. G) COSTKAP Cost of Capital (AAR Railroad Facts) ROILCM Return on Investment in Locomotives [(IBOLOCO+LOCINVL)- (ACDOLOCO+LOCACDL)]*COSTKAP IBOLOCO Investment Base in Owned Loc. (R1, Sched 415, line 5, Col. G) LOCINVL Investment Base in Leased Loc. (R1, Sched 415, line 5, Col. H) ACDOLOCO Accum. Depr. Owned Loc. (R1, Sched 415, line 5, Col. I) LOCACDL Accum. Depr. Leased Loc. (R1, Sched 415, line 5, Col. J) ROICRS Return on Investment in Cars [(IBOCARS+CARINVL)- (ACDOCARS+CARACDL)]*COSTKAP IBOCARS Investment Base in Owned Cars (R1, Sched 415, line 24, Col. G) CARINVL Investment Base in Leased Cars (R1, Sched 415, line 24, Col. H) ACDOCARS Accum. Depr. Owned Cars (R1, Sched 415, line 24, Col. I) CARACDL Accum. Depr. Leased Loc. (R1, Sched 415, line 24, Col. J) Output Variables Coal Car-Miles Loaded Car-Miles (R1, Sched 755, Col. B, lines 18, 21, 22, 50, 53, 54) Farm Car-Miles Loaded Car-Miles (R1, Sched 755, Col. B, lines 20, 23, 24, 52, 55, 56, 61, 62) Intermodal Car-Miles Loaded Car-Miles (R1, Sched 755, Col. B, lines 25, 57) Table A2: Data Definitions and Sources * Variable Source Pulp Car-Miles Loaded Car-Miles (R1, Sched 755, Col. B, lines 16, 17, 28, 48, 49, 60) Other Car-Miles Loaded Car-Miles (R1, Sched 755, Col. B, lines 15, 19, 26, 27, 29, 47, 51, 58, 59, 63) Factor Prices (all divided by GDP Price Deflator) Labor Price Labor Price per Hour (SWGE+FRINGE) / LBHRS SWGE Total Salary and Wages (R1, Sched 410, line 620, Col B) FRINGE Fringe Benefits (R1, Sched 410, lns. 112-114, 205, 224, 309, 414, 430, 505, 512, 522, 611, Col E) LBHRS Labor Hours (Wage Form A, Line 700, Col 4+6) Equipment Price Weighted Average Equipment Price (ROI, Ann. Depr, and Lease/Rental payments. per Car and Locomotive - weighted by that type of equipment's share in total equipment cost) RENTLOCO Lease/Rental Payments Locomotives (R1, Sched 415, Line 5, Col. F) RENTCARS Lease/Rental Payments Freight Cars (R1, Sched 415, Line 24, Col. F) ANDOLOCO Ann. Depr. Owned Loc. (R1, Sched 415, line 5, Col. C) ANDLLOCO Ann. Depr. Leased Loc. (R1. Sched 415, line 5, Col. D) ANDOCARS Ann. Depr. Owned Cars (R1, Sched 415, line 24, Col. C) ANDLCARS Ann. Depr. Leased Cars (R1, Sched 415, line 24, Col. D) OWNLOCO Owned Locomotives (R1, Sched 710, line 10, Col. H) LEASELOCO Leased Locomotives (R1, Sched 710, line 10, Col. I) OWNCARS Owned Cars (R1, Sched 710, line 53, Col. I) LEASECARS Leased Cars (R1, Sched 710, line 53, Col. J) Fuel Price Fuel Expenses/Fuel Gallons FUEL Expenses Fuel Expenses (R1, Sched 410, line 409, Col F + R1, Sched 410, line 425, Col F) FUEL Gallons Fuel Gallons (R1, Sched 750, line 4, Col B) Materials and Supply Price AAR Materials and Supply Index Way and Structures Price (ROIRD+ANNDEPRD)/ MOT Table A2: Data Definitions and Sources * Variable Source ANNDEPRD Annual Depreciation of Road (R1, Sched 335, line 30, Col C) MOT Miles of Track (R1, Sched 720, line 6, Col B) Technological Conditions Tons per Car RTM/TOTCM RTM Revenue Ton-Miles (R1, Sched 755, line 110, Col. B) TOTCM Total Loaded Car-Miles (R1, Sched 755, Col. B, lines 30, 64) RM Route Miles (R1, Sched 700, line 57, Col. C) PCTORG Percent of Tons Originated ((TONSOT+TONSOD)/TOTTONS) TONSOT, TONSOD, TOTTONS Tons Originated and Terminated, Tons Originated and Delivered, Total Tons (QCS, line 900, Cols. C, E, and K) Average Length of Haul TOTCM / TOTCARS TOTCARS Total cars carried (QCS, line 900, Col. J) Data on Revenues and Carloads by Commodity and Car-Type Total Revenues by Commodity (QCS, line corresponding to 2-digit commodity, Col. L) Total Carloads by Commodity (QCS, line corresponding to 2-digit commodity, Col. J) CLOT Total Carloads Originated and Terminated by Car-Type (URCS Worktable A, Part 6, Col. 1) CLOF Total Carloads Originated and Forwarded by Car-Type (URCS Worktable A, Part 6, Col. 2) CLRT Total Carloads Received and Terminated by Car-Type (URCS Worktable A, Part 6, Col. 3) CLRF Total Carloads Received and Forwarded by Car-Type (URCS Worktable A, Part 6, Col. 4) ALH by Output Type Car-Miles for Output Type / (CLOT+CLOF+CLRT+CLRF for cars comprising the output type)

*Italics indicate that the variable is used directly in the cost function Table A3: Nonlinear Seemingly Unrelated Regression Estimation of Railroad Costs 1986-2008 (Full Estimation Results) Variable Parameter Estimate Standard Error Intercept 22.5233* 0.1314 Labor Price 0.3145* 0.0055 Equipment Price 0.1028* 0.0031 Fuel Price 0.0800* 0.0029 Materials Price 0.2548* 0.0043 Output 0.5904* 0.0754 Route Miles 0.4539* 0.1279 Percent of Tons Originated 0.0362 0.0896 Average Length of Haul -0.1749*** 0.0895 Tons Per Car 0.3426* 0.1181 Time -0.3237* 0.0454

Qf 0.2239* 0.0553

Qt 0.2422* 0.0477

Qp 0.1247* 0.0423

Qo 0.1442* 0.0338 ½ Labor Price2 0.0847* 0.0147 ½ Equipment Price2 0.01144** 0.0048 ½ Fuel Price2 0.0741* 0.0035 ½ Materials Price2 0.0232 0.0222 Labor Price x Equip Price -0.0267* 0.0052 Labor Price x Fuel Price -0.0272* 0.0051 Labor Price x Materials Price 0.0470* 0.0153 Equip Price x Fuel Price -0.0112* 0.0024 Equip Price x Materials Price 0.0365* 0.0075 Fuel Price x Materials Price -0.0162** 0.0063 ½ Output2 0.3948* 0.1487 ½ Route Miles2 0.0692 0.1753 ½ Pct. Tons Orig2 -1.4201* 0.3489 ½ Avg. Haul2 0.0783 0.1831 ½ Tons per Car2 0.0259 0.3865 Table A3: Nonlinear Seemingly Unrelated Regression Estimation of Railroad Costs 1986-2008 (Full Estimation Results) Variable Parameter Estimate Standard Error ½ Time2 -0.0984 0.0629 Labor Price x Output 0.0454* 0.0089 Equipment Price x Output -0.0193* 0.0075 Fuel Price x Output 0.0252* 0.0041 Materials Price x Output 0.0079 0.0137 Labor Price x Route Miles -0.0261* 0.0096 Equipment Price x Route Miles 0.0232* 0.0082 Fuel Price x Route Miles -0.0303* 0.0045 Materials Price x Route Miles -0.0183 0.0148 Labor Price x Pct. Orig. -0.0170*** 0.0094 Equipment Price x Pct. Orig. -0.0128 0.0080 Fuel Price x Pct. Orig. -0.0074*** 0.0043 Materials Price x Pct. Orig. 0.0069 0.0143 Labor Price x Avg. Haul -0.0548* 0.0085 Equipment Price x Avg. Haul -0.0071 0.0071 Fuel Price x Avg. Haul 0.0483* 0.0039 Materials Price x Avg. Haul 0.0082 0.0127 Labor Price x Tons per Car -0.0223** 0.0110 Equipment Price x Tons per Car -0.0273* 0.0093 Fuel Price x Tons per Car 0.0695* 0.0052 Materials Price x Tons per Car -0.0439** 0.0171 Labor Price x Time -0.0479* 0.0056 Equipment Price x Time 0.0069 0.0045 Fuel Price x Time 0.0055** 0.0026 Materials Price x Time 0.0293* 0.0084 Route Miles x Pct. Tons Orig. 0.3892*** 0.2194 Route Miles x Avg. Haul 0.5943* 0.2106 Route Miles x Tons per Car 0.1305 0.2508 Route Miles x Time 0.1355 0.1046 Pct. Tons Orig. x Avg. Haul -0.3907*** 0.2234 Table A3: Nonlinear Seemingly Unrelated Regression Estimation of Railroad Costs 1986-2008 (Full Estimation Results) Variable Parameter Estimate Standard Error Pct. Tons Orig. x Tons per Car -0.5168*** 0.2967 Pct. Tons Orig. x Time 0.1904 0.1203 Avg. Haul x Tons per Car -0.0062 0.2214 Avg. Haul x Time 0.0839 0.0895 Tons per Car x Time 0.0703 0.1184 Output x Route Miles -0.2949*** 0.1607 Output x Pct. Tons Orig. 0.0718 0.1498 Output x Avg. Haul -0.4413* 0.1446 Output x Tons per Car 0.0375 0.2276 Output x Time -0.1688*** 0.0925 *significant at the 1 percent level

**significant at the 5 percent level

***significant at the 10 percent level

Variables except for Qs are in Natural Logarithms, where Output=f(Qf,Qt,Qp,Qo,Qc).

Parameter estimates for railroad dummies not shown. They are available upon request from the authors.

Adjusted R-Square: Cost = .9981, Labor Share = .7969, Equip. Share = .1661, Fuel Share = .8575, Mat. Share = .3687

# of Observations=222 Table A4: Simulated Revenue/Marginal Cost Ratios for Coal, Intermodal, Farm Products, Chemicals, Food Products, Pulp/Paper, Lumber Products – 1986-2007 (2005 Prices -- Yearly Mean all Indep. Vars.) – Note R=Revenues, MC=Marginal Cost, CM=Car-Mile Coal (Standard Errors are in Parentheses) Year R/MC Revenue per CM MC per CM R/SAC 1986 1.93 $6.05 $3.14 0.38 (0.38) (0.61) (0.07) 1987 1.89 $5.46 $2.90 0.39 (0.36) (0.55) (0.06) 1988 1.96 $5.53 $2.82 0.42 (0.34) (0.49) (0.07) 1989 2.05 $5.58 $2.72 0.40 (0.35) (0.46) (0.07) 1990 1.97 $5.30 $2.70 0.41 (0.32) (0.44) (0.06) 1991 1.60 $4.49 $2.81 0.40 (0.27) (0.47) (0.05) 1992 1.64 $4.25 $2.60 0.39 (0.27) (0.43) (0.05) 1993 1.75 $4.40 $2.51 0.33 (0.28) (0.40) (0.05) 1994 1.71 $4.26 $2.49 0.34 (0.28) (0.40) (0.05) 1995 1.68 $4.25 $2.53 0.29 (0.27) (0.41) (0.05) 1996 1.86 $4.30 $2.31 0.34 (0.30) (0.38) (0.05) 1997 1.45 $3.74 $2.57 0.33 (0.25) (0.44) (0.05) 1998 1.41 $3.37 $2.39 0.35 (0.25) (0.42) (0.04) 1999 1.31 $3.16 $2.41 0.34 (0.24) (0.44) (0.04) 2000 1.31 $3.06 $2.34 0.34 (0.24) (0.42) (0.04) 2001 1.44 $3.25 $2.26 0.37 (0.26) (0.41) (0.04) 2002 1.46 $3.12 $2.14 0.34 (0.27) (0.39) (0.04) 2003 1.43 $3.01 $2.11 0.34 (0.26) (0.38) (0.04) 2004 1.40 $3.08 $2.20 0.33 (0.26) (0.41) (0.04) 2005 1.30 $3.16 $2.43 0.32 (0.24) (0.46) (0.04) 2006 1.13 $2.19 $1.94 0.35 (0.21) (0.35) (0.03) 2007 1.18 $2.35 $1.99 0.36 (0.22) (0.37) (0.03) 2008 1.20 $2.39 $1.99 0.37 Table A4: Simulated Revenue/Marginal Cost Ratios for Coal, Intermodal, Farm Products, Chemicals, Food Products, Pulp/Paper, Lumber Products – 1986-2007 (2005 Prices -- Yearly Mean all Indep. Vars.) – Note R=Revenues, MC=Marginal Cost, CM=Car-Mile Coal (Standard Errors are in Parentheses) Year R/MC Revenue per CM MC per CM R/SAC (0.23) (0.37) (0.03) Table A4: Simulated Revenue/Marginal Cost Ratios for Coal, Intermodal, Farm Products, Chemicals, Food Products, Pulp/Paper, Lumber Products – 1986-2007 (2005 Prices -- Yearly Mean all Indep. Vars.) – Note R=Revenues, MC=Marginal Cost, CM=Car-Mile TOFC Year R/MC Revenue per CM MC per CM R/SAC 1986 0.60 $1.71 $2.87 0.17 (0.13) (0.61) (0.02) 1987 0.58 $1.53 $2.65 0.17 (0.12) (0.55) (0.02) 1988 0.52 $1.33 $2.57 0.15 (0.10) (0.51) (0.02) 1989 0.44 $1.10 $2.49 0.13 (0.09) (0.49) (0.01) 1990 0.55 $1.35 $2.47 0.15 (0.11) (0.48) (0.02) 1991 0.60 $1.55 $2.57 0.16 (0.12) (0.51) (0.02) 1992 0.68 $1.62 $2.37 0.17 (0.14) (0.47) (0.02) 1993 0.72 $1.65 $2.30 0.18 (0.14) (0.45) (0.02) 1994 0.73 $1.66 $2.28 0.19 (0.15) (0.46) (0.02) 1995 0.74 $1.71 $2.31 0.18 (0.15) (0.46) (0.02) 1996 0.87 $1.84 $2.11 0.20 (0.18) (0.45) (0.03) 1997 0.78 $1.84 $2.35 0.21 (0.17) (0.51) (0.03) 1998 0.98 $2.15 $2.18 0.23 (0.22) (0.49) (0.03) 1999 0.90 $1.97 $2.20 0.22 (0.21) (0.50) (0.03) 2000 1.01 $2.16 $2.14 0.25 (0.23) (0.49) (0.04) 2001 0.98 $2.02 $2.06 0.23 (0.23) (0.48) (0.03) 2002 1.04 $2.03 $1.95 0.24 (0.24) (0.46) (0.03) 2003 1.08 $2.08 $1.92 0.25 (0.25) (0.45) (0.04) 2004 1.15 $2.31 $2.01 0.25 (0.27) (0.48) (0.04) 2005 1.17 $2.59 $2.22 0.25 (0.28) (0.53) (0.04) 2006 1.44 $2.55 $1.77 0.28 (0.34) (0.42) (0.05) 2007 1.41 $2.56 $1.82 0.24 (0.34) (0.44) (0.05) 2008 NA NA $1.82 NA Table A4: Simulated Revenue/Marginal Cost Ratios for Coal, Intermodal, Farm Products, Chemicals, Food Products, Pulp/Paper, Lumber Products – 1986-2007 (2005 Prices -- Yearly Mean all Indep. Vars.) – Note R=Revenues, MC=Marginal Cost, CM=Car-Mile TOFC Year R/MC Revenue per CM MC per CM R/SAC (0.44) Table A4: Simulated Revenue/Marginal Cost Ratios for Coal, Intermodal, Farm Products, Chemicals, Food Products, Pulp/Paper, Lumber Products – 1986-2007 (2005 Prices -- Yearly Mean all Indep. Vars.) – Note R=Revenues, MC=Marginal Cost, CM=Car-Mile

Farm Products, Chemicals, Food Products Farm Products Chemicals Food Products Year R/MC Revenue R/SAC R/MC Revenue R/SAC R/MC Revenue R/SAC per CM per CM per CM 1986 1.23 $3.25 0.29 1.82 $4.84 0.43 1.44 $3.82 0.34 (0.35) (0.06) (0.52) (0.09) (0.41) (0.07) 1987 1.31 $3.20 0.33 1.99 $4.86 0.50 1.51 $3.69 0.38 (0.37) (0.06) (0.55) (0.09) (0.42) (0.07) 1988 1.46 $3.47 0.36 2.08 $4.94 0.51 1.55 $3.69 0.38 (0.39) (0.07) (0.56) (0.09) (0.42) (0.07) 1989 1.53 $3.51 0.36 2.06 $4.73 0.48 1.50 $3.45 0.35 (0.40) (0.06) (0.54) (0.09) (0.39) (0.06) 1990 1.53 $3.48 0.37 1.95 $4.45 0.47 1.44 $3.27 0.35 (0.39) (0.06) (0.50) (0.08) (0.37) (0.06) 1991 1.39 $3.31 0.38 1.85 $4.38 0.50 1.33 $3.16 0.36 (0.36) (0.06) (0.47) (0.07) (0.34) (0.05) 1992 1.45 $3.19 0.40 1.85 $4.06 0.51 1.35 $2.95 0.37 (0.37) (0.06) (0.47) (0.07) (0.34) (0.05) 1993 1.45 $3.08 0.36 1.78 $3.79 0.45 1.34 $2.84 0.34 (0.36) (0.06) (0.44) (0.07) (0.33) (0.05) 1994 1.62 $3.41 0.40 1.93 $4.06 0.47 1.47 $3.09 0.36 (0.40) (0.06) (0.48) (0.07) (0.37) (0.05) 1995 1.59 $3.39 0.34 1.69 $3.60 0.36 1.33 $2.84 0.29 (0.39) (0.06) (0.42) (0.06) (0.33) (0.05) 1996 1.56 $3.05 0.36 1.79 $3.49 0.41 1.38 $2.70 0.32 (0.39) (0.06) (0.44) (0.06) (0.34) (0.05) 1997 1.43 $3.10 0.41 1.59 $3.46 0.46 1.28 $2.78 0.37 (0.37) (0.06) (0.41) (0.07) (0.33) (0.05) 1998 1.36 $2.75 0.41 1.45 $2.94 0.44 1.22 $2.46 0.37 (0.36) (0.05) (0.38) (0.06) (0.32) (0.05) 1999 1.40 $2.84 0.45 1.52 $3.08 0.49 1.24 $2.53 0.40 (0.37) (0.06) (0.40) (0.06) (0.33) (0.05) 2000 1.51 $2.98 0.48 1.63 $3.23 0.52 1.32 $2.61 0.42 (0.39) (0.06) (0.43) (0.07) (0.34) (0.06) 2001 1.41 $2.69 0.44 1.56 $2.98 0.48 1.26 $2.41 0.39 (0.37) (0.06) (0.41) (0.06) (0.33) (0.05) 2002 1.51 $2.73 0.43 1.65 $2.98 0.47 1.39 $2.50 0.39 (0.40) (0.06) (0.43) (0.07) (0.36) (0.06) 2003 1.52 $2.70 0.44 1.64 $2.92 0.48 1.40 $2.49 0.40 (0.39) (0.06) (0.43) (0.07) (0.36) (0.06) 2004 1.46 $2.71 0.41 1.53 $2.84 0.43 1.31 $2.44 0.37 (0.38) (0.06) (0.40) (0.06) (0.35) (0.05) 2005 1.49 $3.06 0.43 1.47 $3.01 0.42 1.31 $2.67 0.37 (0.39) (0.06) (0.39) (0.06) (0.34) (0.05) 2006 1.93 $3.16 0.51 1.90 $3.11 0.50 1.74 $2.84 0.46 (0.50) (0.08) (0.49) (0.08) (0.45) (0.08) Table A4: Simulated Revenue/Marginal Cost Ratios for Coal, Intermodal, Farm Products, Chemicals, Food Products, Pulp/Paper, Lumber Products – 1986-2007 (2005 Prices -- Yearly Mean all Indep. Vars.) – Note R=Revenues, MC=Marginal Cost, CM=Car-Mile

Farm Products, Chemicals, Food Products Farm Products Chemicals Food Products Year R/MC Revenue R/SAC R/MC Revenue R/SAC R/MC Revenue R/SAC per CM per CM per CM 2007 1.80 $3.02 0.46 1.87 $3.14 0.47 1.72 $2.90 0.44 (0.47) (0.07) (0.48) (0.08) (0.45) (0.07) 2008 2.11 $3.54 0.52 2.14 $3.59 0.53 1.99 $3.34 0.49 (0.55) (0.08) (0.56) (0.08) (0.52) (0.08)

Table A4: Simulated Revenue/Marginal Cost Ratios for Coal, Intermodal, Farm Products, Chemicals, Food Products, Pulp/Paper, Lumber Products – 1986-2007 (2005 Prices -- Yearly Mean all Indep. Vars.) – Note R=Revenues, MC=Marginal Cost, CM=Car-Mile Pulp/Paper Products and Lumber Pulp/Paper Products Lumber Year R/MC Revenue per R/SAC R/MC Revenue per R/SAC MC per CM CM CM 1986 1.97 $2.91 0.35 1.77 $2.62 0.19 $1.48 (0.72) (0.08) (0.65) (0.04) (0.54) 1987 2.02 $2.75 0.21 1.80 $2.45 0.19 $1.36 (0.74) (0.05) (0.66) (0.04) (0.50) 1988 2.15 $2.84 0.20 1.96 $2.59 0.18 $1.33 (0.77) (0.05) (0.70) (0.05) (0.47) 1989 2.19 $2.80 0.18 1.94 $2.48 0.16 $1.28 (0.78) (0.05) (0.69) (0.04) (0.46) 1990 2.05 $2.61 0.16 1.85 $2.35 0.15 $1.27 (0.72) (0.04) (0.65) (0.04) (0.45) 1991 2.03 $2.68 0.16 1.80 $2.37 0.14 $1.32 (0.72) (0.04) (0.64) (0.04) (0.47) 1992 2.00 $2.44 0.15 1.82 $2.22 0.13 $1.22 (0.72) (0.04) (0.65) (0.04) (0.44) 1993 1.99 $2.36 0.15 1.82 $2.15 0.14 $1.18 (0.71) (0.04) (0.65) (0.04) (0.42) 1994 2.01 $2.35 0.15 1.89 $2.22 0.15 $1.17 (0.72) (0.04) (0.68) (0.04) (0.42) 1995 1.99 $2.37 0.14 1.79 $2.13 0.13 $1.19 (0.71) (0.04) (0.64) (0.03) (0.42) 1996 2.02 $2.20 0.13 1.98 $2.16 0.13 $1.09 Table A4: Simulated Revenue/Marginal Cost Ratios for Coal, Intermodal, Farm Products, Chemicals, Food Products, Pulp/Paper, Lumber Products – 1986-2007 (2005 Prices -- Yearly Mean all Indep. Vars.) – Note R=Revenues, MC=Marginal Cost, CM=Car-Mile Pulp/Paper Products and Lumber Pulp/Paper Products Lumber Year R/MC Revenue per R/SAC R/MC Revenue per R/SAC MC per CM CM CM (0.72) (0.04) (0.70) (0.04) (0.39) 1997 1.90 $2.30 0.15 2.01 $2.43 0.16 $1.21 (0.68) (0.04) (0.72) (0.05) (0.44) 1998 2.16 $2.43 0.17 2.31 $2.60 0.19 $1.12 (0.79) (0.05) (0.84) (0.05) (0.41) 1999 1.98 $2.25 0.17 2.25 $2.55 0.20 $1.13 (0.73) (0.05) (0.83) (0.05) (0.42) 2000 2.25 $2.48 0.19 2.53 $2.78 0.21 $1.10 (0.82) (0.05) (0.92) (0.06) (0.40) 2001 2.25 $2.39 0.17 2.53 $2.69 0.19 $1.06 (0.83) (0.05) (0.93) (0.06) (0.39) 2002 2.44 $2.45 0.17 2.77 $2.79 0.20 $1.01 (0.90) (0.05) (1.02) (0.06) (0.37) 2003 2.52 $2.50 0.18 2.93 $2.90 0.21 $0.99 (0.92) (0.06) (1.07) (0.06) (0.36) 2004 2.38 $2.46 0.16 2.79 $2.89 0.19 $1.03 (0.88) (0.05) (1.03) (0.06) (0.38) 2005 2.38 $2.72 0.16 2.96 $3.38 0.20 $1.14 (0.88) (0.05) (1.09) (0.06) (0.42) 2006 3.37 $3.07 0.18 4.21 $3.84 0.22 $0.91 (1.23) (0.07) (1.53) (0.09) (0.33) 2007 3.26 $3.05 0.14 4.03 $3.77 0.17 $0.94 (1.19) (0.06) (1.47) (0.07) (0.34) 2008 3.59 $3.36 0.13 4.71 $4.40 0.15 $0.94 (1.30) (0.06) (1.71) (0.07) (0.34) Figure 1: Comparison of MC Estimates - Overall Means vs. Indiv. RRs (Coal)

Figure 2: Comparison of MC Estimates - Overall Means vs. Indiv. RRs (TOFC) Figure 3: Comparison of MC Estimates - Overall Means vs. Indiv. RRs (Farm/Chem/Food) Figure 4: Comparison of MC Estimates - Overall Means vs. Indiv. RRs (Pulp/Paper/Lumber)