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Production costs, congestion, scope and scale economies in urban bus transportation corridors

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  • Fernández L., J. Enrique
  • de Cea Ch., Joaqui­n
  • de Grange C., Louis

Abstract

A microeconomic model is developed to study the main characteristics of production costs in urban bus corridors. A multiproduct formulation is used, considering trips during peak and off peak periods as different products. The influence of the demand structure and congestion in the production of trips are considered in the analysis. Production and cost functions are specified using a fix proportion technology. The characteristics of period specific economies of scale, ray scale economies and transray convexity are studied with and without congestion. A numerical example is presented to illustrate the results obtained.

Suggested Citation

  • Fernández L., J. Enrique & de Cea Ch., Joaqui­n & de Grange C., Louis, 2005. "Production costs, congestion, scope and scale economies in urban bus transportation corridors," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(5), pages 383-403, June.
    • Handle: RePEc:eee:transa:v:39:y:2005:i:5:p:383-403
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    References listed on IDEAS

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    1. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
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    Cited by:

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    2. Santiago Roca & Luis Simabuko, 2023. "Informality and Tax Refund in Peru’s Intercity Passenger Ground Transport Market: An Empirical Appraisal," Transportation, Springer, vol. 50(3), pages 1103-1123, June.
    3. Batarce, Marco, 2016. "Estimation of urban bus transit marginal cost without cost data," Transportation Research Part B: Methodological, Elsevier, vol. 90(C), pages 241-262.
    4. Paul J.J. Welfens & Nan Yu & David Hanrahan & Benedikt Schmuelling & Heiko Fechtner, 2018. "Electrical Bus Mobility in the EU and China: Technological, Ecological and Economic Policy Perspectives," EIIW Discussion paper disbei255, Universitätsbibliothek Wuppertal, University Library.
    5. de Grange, Louis & Troncoso, Rodrigo & Briones, Ignacio, 2018. "Cost, production and efficiency in local bus industry: An empirical analysis for the bus system of Santiago," Transportation Research Part A: Policy and Practice, Elsevier, vol. 108(C), pages 1-11.
    6. Tirachini, Alejandro & Hensher, David A., 2011. "Bus congestion, optimal infrastructure investment and the choice of a fare collection system in dedicated bus corridors," Transportation Research Part B: Methodological, Elsevier, vol. 45(5), pages 828-844, June.
    7. Albalate, Daniel & Bel, Germà, 2010. "What shapes local public transportation in Europe? Economics, mobility, institutions, and geography," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 775-790, September.
    8. Qiao, Yu & Fricker, Jon D. & Labi, Samuel, 2019. "Effects of bundling policy on project cost under market uncertainty: A comparison across different highway project types," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 606-625.

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