OWNER-OPERATORS, DEMAND FLUCTUATIONS AND THE CHOICE OF TECHNOLOGY

The purpose of this note is to demonstrate that the flexible technology attained by trucking firms through the use of owner-operators is optimum when they face a fluctuating demand for their services. The theory of firm behaviour under conditions of fluctuating demand is summarized. The conditions under which firms in a competitive industry facing fluctuating demand will prefer a flexible technology, are derived. Similar conditions are also derived for firms in a price-regulated industry. It is demonstrated that owner-operators do indeed represent a more flexible technology. The conclusions reached are that the larger the seasonal or cyclical fluctuations in demand facing the carriers, the more likely they are to use owner-operators. The available empirical evidence is consistent with these findings. (TRRL)

• Availability:
  • Find a library where document is available. Order URL: https://www.library.northwestern.edu/find-borrow-request/requests-interlibrary-loan/lending-institutions.html
• Authors:
  • GARROD, P V
  • Miklius, W
• Publication Date: 1984-9

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 293-302
• Serial:
  • Journal of Transport Economics and Policy
  • Volume: 18
  • Issue Number: 3
  • Publisher: University of Bath
  • ISSN: 0022-5258
  • Serial URL: http://www.jtep.com

Subject/Index Terms

• TRT Terms: Competition; Demand; Economic factors; Economics; Flexibility; Freight transportation; Hiring policies; Owner operators; Policy; Transportation; Trucks
• Uncontrolled Terms: Hire; Use
• Old TRIS Terms: Fluctuation
• ITRD Terms: 235: Competition; 285: Demand (econ); 263: Economics of transport; 741: Goods traffic; 228: Leasing; 1236: Lorry; 173: Policy; 9084: Use
• Subject Areas: Economics; Planning and Forecasting; Policy; Transportation (General); I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00392694
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Files: ITRD, TRIS
• Created Date: Apr 29 1985 12:00AM