The second chapter delves deeper into the statistical measures. There is a clear difference between normal economic analysis and transport economics, and an operations manager may go into error when he or she is not aware of that. The transport sector tends to have high fixed costs in the short run, and low marginal costs in the short run. This makes for cartels and monopolies - and government regulations. To better understand the world of transport, we look at the basic textbook models of monopoly, a cartel and a duopoly.
Transport normally uses networks.
Since the shape of the demand function is important in practice, we look at linear, loglinear, logistic and linear-exponential demand. A specific form of market segmentation is peak load pricing, and it is interesting to see how this model can be relevant for the distinction between first class and economy class in air transport. These lecture notes conclude by lists of exercise questions and real exams. Table of Contents 1. Relating economic sectors to transport Chain indexing Relation to transport 3.