IDEAS home Printed from https://ideas.repec.org/p/ags/feemss/256057.html
   My bibliography  Save this paper

Urban Distribution Centres and Competition among Logistics Providers: a Hotelling Approach

Author

Listed:
  • Daniele Crotti
  • Elena Maggi

Abstract

In recent years several European municipalities have paired market-based measures with urban distribution centres (UDC) in order to reduce CO2 emissions and make more sustainable urban freight ‡ows. However, UDCs may add reloading costs and extra delivery times which have relevant impact on both urban supply chains and the competition among traditional and UDC-based logistics service providers in terms of service quality and freight rates. By using a duopolistic Hotelling framework, we show that market-based measures and subsidies might be substitutes to enhance the demand for UDC-based providers but public funding can be reduced by improving the quality of UDC services. These results can enlarge the scope for investments in UDC value-adding services in order to decrease private crowding-out effects in the long run.

Suggested Citation

  • Daniele Crotti & Elena Maggi, 2017. "Urban Distribution Centres and Competition among Logistics Providers: a Hotelling Approach," SAS: Society and Sustainability 256057, Fondazione Eni Enrico Mattei (FEEM).
  • Handle: RePEc:ags:feemss:256057
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/256057/files/NDL2017-017.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ching-to Ma & James Burgess, 1993. "Quality competition, welfare, and regulation," Journal of Economics, Springer, vol. 58(2), pages 153-173, June.
    2. Lindholm, Maria Eleonor & Blinge, Magnus, 2014. "Assessing knowledge and awareness of the sustainable urban freight transport among Swedish local authority policy planners," Transport Policy, Elsevier, vol. 32(C), pages 124-131.
    3. Kut C. So, 2000. "Price and Time Competition for Service Delivery," Manufacturing & Service Operations Management, INFORMS, vol. 2(4), pages 392-409, April.
    4. Annika Herr, 2011. "Quality and Welfare in a Mixed Duopoly with Regulated Prices: The Case of a Public and a Private Hospital," German Economic Review, Verein für Socialpolitik, vol. 12(4), pages 422-437, November.
    5. Cerruti, Davide, 2013. "No free polluting anymore: The impact of a vehicle pollution charge on air quality," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150575, Agricultural and Applied Economics Association.
    6. Edoardo Marcucci & Romeo Danielis, 2008. "The potential demand for a urban freight consolidation centre," Transportation, Springer, vol. 35(2), pages 269-284, March.
    7. Nagurney, Anna & Yu, Min & Floden, Jonas & Nagurney, Ladimer S., 2014. "Supply chain network competition in time-sensitive markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 112-127.
    8. Zhang, M. & Janic, M. & Tavasszy, L.A., 2015. "A freight transport optimization model for integrated network, service, and policy design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 61-76.
    9. Gad Allon & Awi Federgruen, 2007. "Competition in Service Industries," Operations Research, INFORMS, vol. 55(1), pages 37-55, February.
    10. Anna Trentini & Jesus Gonzalez Feliu & Nicolas Malhéné, 2015. "Developing urban logistics spaces: UCC and PLS in South-Western Europe," Working Papers halshs-01214749, HAL.
    11. Teodor Gabriel Crainic & Nicoletta Ricciardi & Giovanni Storchi, 2009. "Models for Evaluating and Planning City Logistics Systems," Transportation Science, INFORMS, vol. 43(4), pages 432-454, November.
    12. Julian Allen & Michael Browne & Allan Woodburn & Jacques Leonardi, 2012. "The Role of Urban Consolidation Centres in Sustainable Freight Transport," Transport Reviews, Taylor & Francis Journals, vol. 32(4), pages 473-490, April.
    13. Unknown, 2013. "SAEA 2013 Annual Meetings," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45, pages 1-1, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Community/Rural/Urban Development;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:feemss:256057. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/feemmit.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.