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- W659435969 abstract "The estimation of cost functions for the different transportation industries has played an important role in the analysis of industry structure and technology from a microeconomic perspective. Such an analysis can be performed on the basis of the so called dual properties of the cost function, which are in turn a result from the theoretical observation that cost minimization takes place on the technical boundary. However, the fact that transportation demand is also affected by the level of service has not been dealt with within the context of transportation cost functions. The relevance of this point is guaranteed since this effect, which is more the rule than the exception, makes transportation output endogenous. This paper provides a framework to understand the role of the level of service in the behavior of a firm facing exogenous input and output prices. This paper will show that the firm does not necessarily operate on the technical frontier. The role of the operating options is highlighted in an example using a cyclical transportation system which illustrates the concept." @default.
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- W659435969 date "1983-01-01" @default.
- W659435969 modified "2023-09-23" @default.
- W659435969 title "Level of Service and Minimum Cost: Illustration with a Cyclical Transportation System" @default.
- W659435969 hasPublicationYear "1983" @default.
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