CALCULATION OF ECONOMIES OF SPATIAL SCOPE FROM TRANSPORT COST FUNCTIONS WITH AGGREGATE OUTPUT WITH AN APPLICATION TO THE AIRLINE INDUSTRY

Transportation network growth has traditionally been analyzed by calculating returns to scale with variable network size (RTS). In this paper, the authors contend that this method has its shortcomings, and instead, propose a new method that replaces RTS by calculating economies of spatial scope. This new method calculates spatial scope from transport cost functions with aggregate output. It allows the cost convenience or inconvenience of network growth to be examined, as well as providing a method for incorporating a density explanation by considering cost changes produced both by density and network size increases. The authors illustrate their methodological approach of calculating economies of scope by using a case study of six regional and transcontinental Canadian airlines.

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  • Corporate Authors:

    LONDON SCHOOL OF ECONOMICS AND UNIVERSITY OF BATH

    UNIVERSITY OF BATH, CLAVERTON DOWN
    BATH,   United Kingdom  BA2 7AY
  • Authors:
    • Basso, L J
    • Jara-Diaz, S R
  • Publication Date: 2005-1

Language

  • English

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Filing Info

  • Accession Number: 00986867
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Mar 2 2005 12:00AM