Service differentiation is an emerging method to improve profit and to better serve high-priority customers. Such an approach has recently been introduced by one of Europe's leading rail cargo companies. Under this approach, customers can choose between classic and premium service. Premium...

Continuous models of respondent heterogeneity assume the existence of a response function where variables of interest are continuously related to explanatory variables. In many situations this assumption may not be true. In this paper we propose an approach of modeling respondent heterogeneity...