Indivisibilities in Distribution

Thomas Holmes () and Ethan Singer

No 24525, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper develops and estimates a model of indivisibilities in shipping and economies of scale in consolidation. It uses highly detailed data on imports for which it is possible to observe the contents of individual containers. In the model, a firm is able to adapt to indivisibility constraints by using consolidation strategies, and by determining how dense to make its distribution network in both space and time. Indivisibilities are found to create significant scale economies in distribution.

JEL-codes: D24 F0 L0 (search for similar items in EconPapers)
Date: 2018-04
New Economics Papers: this item is included in nep-tre
Note: IO ITI PR
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Citations: View citations in EconPapers (17)

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Working Paper: Indivisibilities in Distribution (2017)
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