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Author: | Basso, L. J. Jara-Diaz, S. R. |
Title: | Calculation of economies of spatial scope from transport cost functions with aggregate output with an application to the airline industry |
Journal: | Journal of Transport, Economics and Policy
2005 : JAN, VOL. 39:1, p. 25-52 |
Index terms: | air transport scaling transport costs |
Language: | eng |
Abstract: | Transport network expansions have usually been analysed calculating returns to scale (RTS) with variable network size, which has been shown to suffer from a number of shortcomings because, in the end, it attempts to capture as a scale property something that in fact is related to scope, namely the addition of new products when a transport network expands. In this article the authors develop a method to calculate economies of spatial scope from transport cost functions with aggregate output, which is then illustrated using the results of a published study on airlines. |
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