Transport Demand and Spatial Equilibria.

Author(s)
Smart, M.
Year
Abstract

Characteristics of transport demand are inferred from spatial equilibrium with exogenous locations. For non-trivial spatial distributions of firms and markets I derive computable expressions for elasticity of transport demand, producer surplus, and consumer surplus as a function of the mass-distance price of transport. Producer surplus is likely to have one or more local maxima, suggesting a disincentive for producers to minimise transport costs. Numerical simulation is used to illustrate results. A method is suggested for computing simultaneous transport and commodity market equilibria for spatially dispersed markets. (Author/publisher).

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Publication

Library number
I E137847 /71 / ITRD E137847
Source

Journal of Transport Economics and Policy. 2008 /05. 42(2) Pp323-343 (12 Refs.)

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