Where Supply Meets Demand: The Spatial Location of Inland Terminals
David Carrillo G. Murillo and
Gernot T. Liedtke
Journal of Transport Economics and Policy, 2015, vol. 49, issue 2, 295-315
Location patterns of intermodal terminals can be explained as the result of a spatial market process. The market equilibrium condition is deduced from a monopolistic competition model that can also be used to describe cluster formation. Depending on demand density, local markets are characterised by spatial or aspatial monopolistic competition; diversity results from different locations in the former and product differentiation in the latter case. By confronting the model with data on German inland terminals, the validity of the model is confirmed and behaviour parameters are deduced. © 2015 LSE and the University of Bath
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