Economies of scale and scope in service firms with demand uncertainty: An application to a Spanish port
Beatriz Tovar and
Alan Wall ()
Maritime Economics & Logistics, 2012, vol. 14, issue 3, 362-385
Although shipping companies assert that the majority of their lines work to a schedule with fixed days of arrival and departure which are programmed on a weekly basis, the demand which container terminals face is characterized by a degree of uncertainty. Up to now, the analysis of cargo handling port activities has given little attention to the relationship between demand variability and firm costs. We analyse how demand uncertainty affects input choices and therefore costs of production. Our results show that demand uncertainty affects port terminal marginal cost and has the effect of increasing the estimates of economies of scale and scope. We conclude that not taking demand uncertainty into account may yield misleading estimates of terminal costs and lead to the wrong conclusions for optimal policy design.
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
http://www.palgrave-journals.com/mel/journal/v14/n3/pdf/mel201212a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/mel/journal/v14/n3/full/mel201212a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:marecl:v:14:y:2012:i:3:p:362-385
Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41278/PS2
Access Statistics for this article
Maritime Economics & Logistics is currently edited by Hercules E. Haralambides
More articles in Maritime Economics & Logistics from Palgrave Macmillan, International Association of Maritime Economists (IAME) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().