ECONOMIES OF SCALE AND FARE DETERMINATION FOR TRANSPORTATION SERVICES

ECONOMIES OF SCALE AND FARE DETERMINATION FOR TRANSPORTATION SERVICES

The notion of cost function for transportation services is discussed. It is argued that the approach followed in most of the transport economic literature, borrowed from standard non-spatial firm theory, may bring about wrong conclusions about optimal price behaviour in the presence of economies of...

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Veröffentlicht in:Rivista internazionale di economia dei trasporti 1995-10, Vol.22 (3), p.347-353
1. Verfasser: ROSON, R.
Format: Artikel
Sprache:eng
Schlagworte:
Cost functions
Economies of scale
Fares
Fixed costs
Marginal costs
Mathematical functions
Transportation costs
Transportation demand
Transportation economics
Transportation services
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Zusammenfassung:The notion of cost function for transportation services is discussed. It is argued that the approach followed in most of the transport economic literature, borrowed from standard non-spatial firm theory, may bring about wrong conclusions about optimal price behaviour in the presence of economies of scale. Some examples illustrating this point are presented.
ISSN:0303-5247