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Service Quality and Motor Carrier Costs: An Empirical Analysis

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  • Allen, W Bruce
  • Liu, Dong
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    Abstract

    This paper overcomes the long-standing problem of measuring motor carriers' service quality by utilizing service quality data collected from shippers. A service quality controlled cost function is estimated for a sample of less-than-truckload motor carriers. It is shown that excluding service quality variables from cost estimation significantly underestimates carriers' scale economies. These scale economies enable large carriers to offer higher quality services at competitive or even lower costs than small carriers. Copyright 1995 by MIT Press.

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    Bibliographic Info

    Article provided by MIT Press in its journal Review of Economics & Statistics.

    Volume (Year): 77 (1995)
    Issue (Month): 3 (August)
    Pages: 499-510

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    Handle: RePEc:tpr:restat:v:77:y:1995:i:3:p:499-510

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    Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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    Cited by:
    1. Díaz-Madroñero, Manuel & Peidro, David & Mula, Josefa & Ferriols, Francisco J., 2010. "Enfoques de programación matemática fuzzy multiobjetivo para la planificación operativa del transporte en una cadena de suministro del sector del automóvil = Fuzzy Multiobjective Mathematical Prog," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative M, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 9(1), pages 44-68, June.
    2. David Levinson & Michael Corbett & Maryam Hashami, 2004. "Operating Costs for Trucks," Working Papers, University of Minnesota: Nexus Research Group 000024, University of Minnesota: Nexus Research Group.
    3. James M MacDonald & Michael E Ollinger, 2000. "Scale Economies and Consolidation in Hog Slaughter," Working Papers, Center for Economic Studies, U.S. Census Bureau 00-03, Center for Economic Studies, U.S. Census Bureau.
    4. McCann, Philip, 2001. "A proof of the relationship between optimal vehicle size, haulage length and the structure of distance-transport costs," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 35(8), pages 671-693, September.
    5. Ollinger, Michael, 2009. "The Cost of Food Safety Technologies in the Meat and Poultry Industries," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin, Agricultural and Applied Economics Association 48783, Agricultural and Applied Economics Association.
    6. Se-il Mun & Yoko Konishi & Yoshihiko Nishiyama & Ji-eun Sung, 2013. "Determinants of Transport Costs for Inter-regional Trade," ERSA conference papers, European Regional Science Association ersa13p361, European Regional Science Association.
    7. Milton Madison & James MacDonald & Michael Ollinger, 2000. "Technological Change and Economies of Scale in U.S. Poultry Slaughter," Working Papers, Center for Economic Studies, U.S. Census Bureau 00-05, Center for Economic Studies, U.S. Census Bureau.
    8. Alberto Fernández & Benito Arruñada & Manuel González, 1998. "Quasi-integration in less-than-truckload trucking," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 292, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2002.
    9. Ollinger, Michael & Ralston, Katherine L. & Guthrie, Joanne F., 2012. "Location, School Characteristics, and the Cost of School Meals," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 37(3), December.

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