Transfer costs in the overseas and internal shipping services of Fiji and Tonga

Date

1974

Authors

Baker, John Richard

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Abstract

The concept of distance is fundamental to an understanding of the process of spatial interaction. Distance may be expressed in either absolute or relative terms, in such varied metrics as kilometres or social distance ranking. The present study places particular attention on 'economic distance', which in its broadest sense is the cost of overcoming distance, and within economic distance upon 'transfer costs'. The study argues first that the definition of economic distance implicit in the literature is imprecise. The cost of overcoming distance appears to have become equated with the user costs (equals the price or freight rate) of the transport service, expressed simply in terms of the cost per ton mile or some similar measure. This user cost is frequently confused with the cost to the transport operator of providing the service. This is in spite of the fact that most sectors of the transport industry are characterised by monopolistic or oligopolistic market structures, which are the complete antithesis of the perfectly competitive market usually seen by economists as being necessary for cost (incurred by the transport operator) to equal price (charged by the transport operator).

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Thesis (PhD)

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