Although the contribution of railroad investment to Canadian econom ic development has been extensively analyzed, the consequences of the freight rate structure have not been examined. This paper is concerne d with how various pricing policies affect land-use patterns, agricultural supply, and...

Pricing behavior at three Hudson's Bay Company trading posts is examined in terms of a model of long-run profit maximization of a depletable resource. At Fort Churchill, where the company acted as a monopsonist purchaser of furs from the Indians, rising European fur prices had little impact on...