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Spatial competition and geographic grain transportation demand on the Mississippi and Illinois rivers

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  • Kevin Henrickson

Abstract

Using a model of spatial competition between grain elevators, I estimate a model of transportation demand for grain elevators located along the Mississippi and Illinois rivers. This analysis uses a unique set of interview data collected by the Tennessee Valley Authority (TVA). Both the theory and the data suggest that there are geographic patterns in barge demand elasticity-patterns which are empirically uncovered using an endogenous switch point model. These results are of central importance to policy-makers as they call into question assumptions made by the models currently used for measuring the benefits of inland waterway improvements.

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  • Kevin Henrickson, 2011. "Spatial competition and geographic grain transportation demand on the Mississippi and Illinois rivers," Applied Economics, Taylor & Francis Journals, vol. 43(10), pages 1257-1269.
  • Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1257-1269
    DOI: 10.1080/00036840802600392
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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
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