IDEAS home Printed from https://ideas.repec.org/a/fep/journl/v2y1989i2p147-159.html
   My bibliography  Save this article

Analysis of technology of bus firms

Author

Listed:
  • Antti Talvitie

    (Finland Highway and Waterway Administration, Helsinki)

  • Tom Bäkström

    (Helsinki School of Economics and Business Administration, Helsinki)

Abstract

The study examines the structure of technology of (Finnish) bus companies. Economies of scale and scope, effect of service type and peaking on the average costs, substitution of factors of production, and technical change are analyzed. The majority of the Finnish bus companies operate at too low a level of production to be cost efficient. With »average» product mix the optimum level of output is 6.5 million bus kilometers per year on the Finnish market. The companies can obtain a cost advantage by having a versatile product-mix. The marginal costs of (six) service types change together with the productmix. The peak period marginal costs are similarly dependent on the productmix which influences how efficiently the capacity, often acquired to satisfy the peak period demands, can be utilized outside the peak period.

Suggested Citation

  • Antti Talvitie & Tom Bäkström, 1989. "Analysis of technology of bus firms," Finnish Economic Papers, Finnish Economic Association, vol. 2(2), pages 147-159, Autumn.
    • Handle: RePEc:fep:journl:v:2:y:1989:i:2:p:147-159
    as

    Download full text from publisher

    File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/fep19892_6.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fep:journl:v:2:y:1989:i:2:p:147-159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Editorial Secretary (email available below). General contact details of provider: https://edirc.repec.org/data/talouea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.