IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/123076.html
   My bibliography  Save this paper

A Quantile Logistic Distribution Hypothesis and bargaining games: An application to the US spot trucking market

Author

Listed:
  • Resende, Max
  • Petterini, Francis

Abstract

The US spot market for truckloads is characterized by a persistent imbalance between supply and demand. In this context, the long‐haul capacity constraints has become the leading indicator of freight rates, especially during the COVID-19 period. In this paper, we have investigated whether capacity can indeed influence rates. To this end, we have presented an extended version of the traditional theoretical perspective used in most transportation planning applications. It combines the dynamics of the matching relationship between carriers and shippers with a Nash trading solution that follows a stochastic process to estimate freight rate elasticities. We then apply this methodology to an exclusive database with information on the top 30 market areas in the US. Overall, we have found evidence that the trucking market structure only shifts due to a major prolonged extreme event, such as COVID-19 and government regulation could potential avoid freight rate surges as it happened during the healthy crisis.

Suggested Citation

  • Resende, Max & Petterini, Francis, 2024. "A Quantile Logistic Distribution Hypothesis and bargaining games: An application to the US spot trucking market," MPRA Paper 123076, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:123076
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/123076/1/MPRA_paper_123076.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    truckload data; freight market; logistic distribution; Nash bargaining; capacity constraints;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:123076. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.