Transportation Time and Freight Cost

Yoko Konishi, Se-il Mun, Yoshihiko Nishiyama and Masahiro Kinomura

Discussion papers from Graduate School of Economics , Kyoto University

Abstract: This paper develops a model of freight transportation market, in which transportation time is endogenously determined in the market. Two types of transportation contract are considered: delivery with and without time designation. Theoretical analysis suggests that, in the presence of the uncertainty in transportation time, shippers choosing the time designation spend longer time for delivering cargos. We estimate the freight charge function, expressway choice model, and transportation time function, using microdata of freight flow in Japan. Based on the estimated freight charge function, we confirm the theoretical predictions. We also obtain the values of willingness to pay for time designation, as an alternative measure to evaluate the reliability value of transportation.

Pages: 47
Date: 2021-12
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:kue:epaper:e-21-007

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