Concepts Of Transportation Economics

by Barry E Prentice, Darren Prokop

Overview

Transportation is the world's largest invisible industry. Modern society is completely dependent on transportation to sustain its way of life, and it is all around us constantly. Yet the economics of transportation is a mystery to most people. Why do air fares rise and fall? Why do urban transit systems struggle to survive and require such large public subsidies? Why does freight transport cost more to move in one direction than an equal distance in another? Why is the government so heavily involved in transportation? Concepts of Transportation Economics provides explanations to these queries and many more, as well-renowned experts in the field, Barry E Prentice and Darren Prokop interpret the unique dynamics underlying transportation through the lens of applied economics, and demonstrate that the operations of transportation are completely logical and obvious once the concepts that underlie business decisions and consumer reactions are explained.

Product Details

ISBN-13:	9789814656160
Publisher:	World Scientific Publishing Company, Incorporated
Publication date:	01/13/2016
Pages:	332
Product dimensions:	5.90(w) x 9.10(h) x 0.90(d)

Table of Contents

About the Authors ix

Structure of the Text xiii

Transportation and Economic Theory xv

A Prologue to the Text xv

What is Transportation? xv

What is Transportation Economics? xviii

Facts xviii

Theory xix

Policy xx

Chapter 1 Transportation, Logistics and Technology 1

Communications and Technical Change 1

Logistics and Supply Chain Management 9

Economics of Technological Change in the Supply Chain 15

Keywords 19

Exercises 20

Chapter 2 The Demand for Transportation 23

Elements of Transportation Demand 23

Freight versus Passenger Demand for Transportation 27

Elasticity of Derived Demand for Transport 33

Keywords 40

Exercises 40

Chapter 3 Trade and Transportation Costs 43

Role of Transport in Trade: The Zero Transportation Cost Case 43

Trade with Real Costs for Transportation 48

Appendix 54

Keywords 54

Exercises 55

Chapter 4 Laws of Variable Proportions and Scale 59

Direct Costs 59

Scale Economies 65

Keywords 70

Exercises 70

Chapters: Cost Economies and Traceability 73

Cost Economies 73

Cost Relationships: Joint, Common, and Constant Costs 82

Keywords 86

Exercises 87

Chapter 6 Modal Supply Characteristics 89

Elasticity of Supply 89

Modal Supply Characteristics 91

Transport Modes: A Comparison 103

Keywords 105

Exercises 105

Chapter 7 Markets and Competition in Transportation 109

Allocative and Productive Efficiency Perfect Competition 109

Perfect Competition 111

Monopoly 118

Keywords 121

Exercises 121

Chapter 8 Externalities, Public Supply and Marginal Cost Pricing 123

Social Costs and Benefits 124

Public Supply 130

Marginal and Average Cost Pricing 132

Keywords 140

Exercises 140

Chapter 9 Spatial and Temporal Pricing in Transportation 143

Fronthaul and Backhaul Pricing 143

Peak Load Pricing 150

Appendix 157

Keywords 158

Exercises 158

Chapter 10 Product Pricing in Transportation 163

Congestion Cost Pricing 163

Price Discrimination 171

Appendix 181

Keywords 182

Exercises 182

Chapter 11 Transportation, Investment and Generalized Cost 185

Cost-Benefit Analysis (CBA) and Investment in Infrastructure 185

Intermodal Competition 200

Keywords 207

Exercises 207

Chapter 12 Location and Land Settlement 211

Site Rents 212

Industrial Location 223

Gateways, Hubs and Trade Corridors 229

Keywords 233

Exercises 233

Chapter 13 Transportation and Government Policy 237

Regulation and Deregulation 237

Taxation and Subsidization 247

Issues of Economic Development 251

Keywords 256

Exercises 256

Chapter 14 Regulatory Enforcement and Compliance 259

The Role of Fines 260

Adverse Selection and Moral Hazard 273

Keywords 278

Exercises 279

Glossary 281

Glossary and Index Items 305