Spatial Price Competition and the Demand for Freight Transportation
AbstractTwo important issues in econometric freight transportation demand analysis are addressed: (1) the simultaneity between quantity shipped and mode/destination choices, and (2) the effect of spatial price competition on the demand for the transportation factor. In the theoretical model, spatial price competition determines the firm's market area and, thus, determines its sales and shipment sizes. The model is estimated using switching regression techniques, since shipment size and mode/destination choice are derived from the same optimization problem. The empirical model provides consistent estimates of unconditional freight demand. These estimates are needed to forecast transportation flows and derive elasticities for policy analysis. Copyright 1989 by MIT Press.
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Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics & Statistics.
Volume (Year): 71 (1989)
Issue (Month): 4 (November)
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Web page: http://mitpress.mit.edu/journals/
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- Abate, Megersa & de Jong, Gerard, 2014. "The optimal shipment size and truck size choice – The allocation of trucks across hauls," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 262-277.
- Cristina Borra & Luis Palma, 2004. "Analyzing the determinants of freight shipper's behavior: own account versus purchased transport," ERSA conference papers ersa04p163, European Regional Science Association.
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