Analysis of technology of bus firms

Antti Talvitie and Tom Bäkström
Additional contact information
Antti Talvitie: Finland Highway and Waterway Administration, Helsinki
Tom Bäkström: Helsinki School of Economics and Business Administration, Helsinki

Finnish Economic Papers, 1989, vol. 2, issue 2, 147-159

Abstract: The study examines the structure of technology of (Finnish) bus companies. Economies of scale and scope, effect of service type and peaking on the average costs, substitution of factors of production, and technical change are analyzed. The majority of the Finnish bus companies operate at too low a level of production to be cost efficient. With »average» product mix the optimum level of output is 6.5 million bus kilometers per year on the Finnish market. The companies can obtain a cost advantage by having a versatile product-mix. The marginal costs of (six) service types change together with the productmix. The peak period marginal costs are similarly dependent on the productmix which influences how efficiently the capacity, often acquired to satisfy the peak period demands, can be utilized outside the peak period.

Date: 1989
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.taloustieteellinenyhdistys.fi/images/stories/fep/fep19892_6.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:2:y:1989:i:2:p:147-159

Access Statistics for this article

More articles in Finnish Economic Papers from Finnish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Editorial Secretary ( this e-mail address is bad, please contact ).