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Investigation of carriers’ ability to transfer toll increases: an empirical analysis of freight agents’ relative market power

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Abstract

Design of effective freight policies requires a comprehensive understanding of freight agents’ interactions. A critical component of the interaction is the freight agents’ relative market power in determining delivery price, time, and frequency. However, empirical studies of freight agents’ market power are limited. This study explores freight carriers’ market power relative to receivers’ by investigating carriers’ ability to transfer toll increases. A stated preference survey is conducted to understand carriers’ willingness to transfer hypothetical toll increases to receivers. The relationship of various factors and the ability to transfer toll increases is first examined by descriptive statistics. Then, regression models are estimated as a function of respondents’ socioeconomic factors, market conditions, hypothetical toll increases, and other factors. Marginal effects of influential factors are obtained to reveal policy implications.

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Acknowledgements

The research reported in this paper was supported by the University Transportation Research Center Region II as part of the Project “Assessing Behavior Changes under the Influence of Travel Demand Management Strategies.”

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Authors and Affiliations

  1. Virgin Hyperloop One, Los Angeles, CA, USA

    Dapeng Zhang

  2. Department of Civil and Environmental Engineering, 4032 JEC Building, Rensselaer Polytechnic Institute, 110 8th Street, Troy, NY, 12180-3590, USA

    Xiaokun Wang

  3. Department of Civil and Environmental Engineering, 4030 JEC Building, Rensselaer Polytechnic Institute, 110 8th Street, Troy, NY, 12180-3590, USA

    José Holguín-Veras

  4. Department of Civil and Environmental Engineering, Rensselaer Polytechnic Institute, Troy, NY, USA

    Wei Zou

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  1. Dapeng Zhang
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  2. Xiaokun Wang
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  3. José Holguín-Veras
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  4. Wei Zou
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Correspondence to Xiaokun Wang.

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Zhang, D., Wang, X., Holguín-Veras, J. et al. Investigation of carriers’ ability to transfer toll increases: an empirical analysis of freight agents’ relative market power. Transportation 46, 2291–2308 (2019). https://doi.org/10.1007/s11116-018-9930-3

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  • DOI: https://doi.org/10.1007/s11116-018-9930-3

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