DISECONOMIES OF SCALE IN URBAN TRANSPORTATION

IN THIS CONTEXT DISECONOMIES MEANS THAT AS THE POPULATION OF A CITY GROWS, ITS TRANSPORTATION INDUSTRY REQUIRES MORE THAN A PROPORTIONAL INCREASE IN RESOURCES. THIS PAPER CONSTRUCTS A RATHER SIMPLE MODEL OF A CITY, WHICH WILL ALLOW FOR PRICE SUBSTITUTION OF LAND, AND CALCULATES IN THIS MODEL HOW TRANSPORTATION COSTS VARY WITH CITY SIZE. THE PRICE WITH WHICH THE INDIVIDUAL IS CONCERNED IS THE AVERAGE COST, WHICH IS THE COST PER CAPITA. IN THE MODEL, THE AVERAGE COST IS SHOWN TO BE ALWAYS LOWER THAN MARGINAL COST, WHICH IS A MEASURE OF THE FULL ADDITIONAL COST OF ANOTHER RESIDENT WHO DECIDES TO JOIN THE CITY. /AUTHOR/

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  • Supplemental Notes:
    • Vol 38, No 1, PP 79-82
  • Corporate Authors:

    N/A

    ,   United States 
  • Authors:
    • Borukhov, E
  • Publication Date: 1971-7

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  • Accession Number: 00202057
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 20 2003 12:00AM