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Economies of Scale in der Produktion versus Diseconomies im Transport Zum Strukturwandel in der Milchindustrie

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Author Info
Boysen, Ole
Schröder, Carsten

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Abstract

In this article, we simulate the concentration process within the German dairy sector employing a sector?wide optimization model. As a result, we get cost minimizing structures of the dairy sector for various time horizons depending on varying levels of transportation costs. We show that the model is capable of describing the current trend characterized by a decrease of the number of dairies while average capacity increases and that ? ceteris paribus ? this trend is likely to continue. In contrast, the trend may weaken or reverse if transportation costs rise in comparison to other types of costs.

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File URL: http://hdl.handle.net/10419/22145
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Publisher Info
Paper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2005/15.

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Date of creation: 2005
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Handle: RePEc:zbw:fubsbe:200515

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Related research
Keywords: Capacitated facility location problem; structural change; transportation;

Find related papers by JEL classification:
C60 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - General
R39 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Other
Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
R40 - Urban, Rural, and Regional Economics - - Transportation Systems - - - General
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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This page was last updated on 2009-11-18.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.