The location of manufacturing firms and imperfect information in transport market
It is well know that transport charges are not symmetric: fronthaul and backhaul costs on a route may differ, because they are affected by the distribution of economic acitivities. This paper develops a two-regional general equilibrium model in which transport costs are determined endogenously as a result of a search and matching process. It is shown that economies or diseconomies of transport density emerge, depending on the search costs of transport firms and the relative importance of the possibility of backhaul transportation. It is found that the symmetry of the distribution of economic activity may break owing to economies of transport density when the additional search costs are small enough.
|Date of creation:||Mar 2013|
|Date of revision:|
|Publication status:||Published in IDE Discussion Paper. No. 398. 2013.3|
|Contact details of provider:|| Postal: 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545|
Web page: http://www.ide.go.jp/
More information through EDIRC
|Order Information:|| Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN|
Web: http://www.ide.go.jp/English/Publish/Order Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:hal:journl:halshs-00179815 is not listed on IDEAS
- Behrens, Kristian & Gaigné, Carl & Thisse, Jacques-François, 2009.
"Industry location and welfare when transport costs are endogenous,"
Journal of Urban Economics,
Elsevier, vol. 65(2), pages 195-208, March.
- Kristian Behrens & Carl Gaigné & Jacques-François Thisse, 2012. "Industry location and welfare when transport costs are endogenous," Post-Print hal-01208822, HAL.
- Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert Nicoud, 2003.
"Economic Geography and Public Policy,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Kristian Behrens, 2005. "How endogenous asymmetries in interregional market access trigger regional divergence," Post-Print halshs-00111972, HAL.
- North, Douglass, 1958. "Ocean Freight Rates and Economic Development 1730-1913," The Journal of Economic History, Cambridge University Press, vol. 18(04), pages 537-555, December.
- Asher Wolinsky, 1986. "True Monopolistic Competition as a Result of Imperfect Information," The Quarterly Journal of Economics, Oxford University Press, vol. 101(3), pages 493-511.
- Takahashi, Takaaki, 2011. "Directional imbalance in transport prices and economic geography," Journal of Urban Economics, Elsevier, vol. 69(1), pages 92-102, January.
- repec:ebl:ecbull:v:18:y:2006:i:5:p:1-7 is not listed on IDEAS
- BEHRENS, Kristian & GAIGNE, Carl & OTTAVIANO, Gianmarco I.P. & THISSE, Jacques-François, .
"How density economies in international transportation link the internal geography of trading partners,"
CORE Discussion Papers RP
1870, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Behrens, Kristian & Gaigne, Carl & Ottaviano, Gianmarco I.P. & Thisse, Jacques-Francois, 2006. "How density economies in international transportation link the internal geography of trading partners," Journal of Urban Economics, Elsevier, vol. 60(2), pages 248-263, September.
- Richard Beilock & Peter Garrod & Walter Miklius, 1986. "Freight Charge Variations in Truck Transport Markets: Price Discrimination or Competitive Pricing?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 226-236.
- Asher Wolinsky, 1983. "Retail Trade Concentration Due to Consumers' Imperfect Information," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 275-282, Spring.
- BEHRENS, Kristian & GAIGNE, Carl, .
"Density (dis)economies in transportation: revisiting the core-periphery model,"
CORE Discussion Papers RP
1944, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Carl Gaigne & Kristian Behrens, 2006. "Density (dis)economies in transportation: revisiting the core-periphery model," Economics Bulletin, AccessEcon, vol. 18(5), pages 1-7.
- De Vany, Arthur S & Saving, Thomas R, 1977. "Product Quality, Uncertainty, and Regulation: The Trucking Industry," American Economic Review, American Economic Association, vol. 67(4), pages 583-94, September.
- Takahashi, Takaaki, 2006. "Economic geography and endogenous determination of transport technology," Journal of Urban Economics, Elsevier, vol. 60(3), pages 498-518, November.
When requesting a correction, please mention this item's handle: RePEc:jet:dpaper:dpaper398. 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: (Marie Kobayashi)
If references are entirely missing, you can add them using this form.