Construct · 1 fields · 1 citations

economies of density: a standalone construct

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Transport economics

cost savings from carrying more traffic over a fixed network, distinguished from economies of scale that come from expanding the network.

In transport economics, economies of density refers to cost savings from carrying more traffic over a fixed network, distinguished from economies of scale that come from expanding the network. This meaning comes from Caves (1984) in The RAND Journal of Economics.[1]

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Nearby constructs

cost4 fields · 4 citationsjingle · one word, four constructs density4 fields · 6 citationsjingle · one word, four constructs network4 fields · 6 citationsjingle · one word, four constructs

References

Caves, D. W., Christensen, L. R., & Tretheway, M. W. (1984). Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ. The RAND Journal of Economics, 15(4), 471. https://doi.org/10.2307/2555519

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