Market power and transportation price formation: Theory and an application to the captive shipper problem

We develop a spatial model of bulk commodity transportation price formation. The spatial transportation price model is first developed for the monopolist carrier. Then the model is extended to quantity-setting and price-setting duopolist carriers under incomplete cross-hauling. Measures developed from the market equilibrium conditions identify whether mill, uniform or discriminatory transportation pricing is the dominant type of price information. Other measures are derived which allow us to differentiate between price-setting and quantity-setting carrier behavior. A Lerner index of the carriers' ability to extract quasi-rents is derived. A modification of the Lerner index specific to transportation prices first proposed by Damus (1981) is also derived.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Economics

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2011

Author dc:creator

• Woock, Rodger Allan

Contributors dc:contributor

• Kolstad, Charles D.

• Economics, General
• Economics, Commerce-Business
• Economics, Theory
• Transportation

Statement dc:rights

• Copyright 1990 Woock, Rodger Allan

Language dc:language

eng

Identifier

AAI9021778
(UMI)AAI9021778

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/19074