Spatial scope of a modern transport technology

Auteurs :
GARCIA PIRES, A.J.
PONTES, J.P.

Description :
This paper studies the endogenous choice of transport technology, traditional versus modern, by a shipper. Although the modern technology is characterized by higher fixed costs and a higher speed of transport, it is chosen for intermediate distances, rather than to long distances. The reason is that, when the shipper switches to the modern technology, the industrial firm changes production from the home to the foreign city. Thus, the demand for transport decreases proportionally to the distance between the home and foreign city. For long distances, revenue from transportation becomes so low that the modern technology does not break even.


Type de document :
Article de périodique

Source :
Journal of regional science, issn : 0022-4146, 2013, vol. 53, n°. 4, p. 712-723, nombre de pages : 12, Références bibliographiques : 14 ref.

Date :
2013

Editeur :
Pays édition : Etats-Unis, Amherst, MA, Regional Science Research Institute