tag:blogger.com,1999:blog-3368499417185960099.post4308771174091856206..comments2023-10-12T09:02:07.053-07:00Comments on Infographics, Maps, Music and More: Nixon's Internal Memos and the Birth of AmtrakRich Coffeyhttp://www.blogger.com/profile/13393911346958078094noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3368499417185960099.post-38322092613690243692015-05-01T15:04:05.898-07:002015-05-01T15:04:05.898-07:00Christopher - Great comment and yes I agree!Christopher - Great comment and yes I agree!Rich Coffeyhttps://www.blogger.com/profile/13393911346958078094noreply@blogger.comtag:blogger.com,1999:blog-3368499417185960099.post-17402110912177771892015-05-01T08:56:42.633-07:002015-05-01T08:56:42.633-07:00That article repeats a fatal flaw in the OMB analy...That article repeats a fatal flaw in the OMB analysis - that less trains is the way to profitability. The problem is, much of the cost of running passenger trains is fixed costs. Run more trains and many of the fixed costs (stations, possibly the equipment fleet) remain the same -- but revenue goes up. Another problem is there is a network effect of added service: imagine for example, that the Chicago - LA train added a spur from Denver. That train might be unprofitable, yet increase the total system profit because the train funnels passengers onto the train going all the way to LA. The added revenue to the system would be greater than the added costs.Christopher Parkerhttps://www.blogger.com/profile/16947034888487890485noreply@blogger.com