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Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

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CHAPTER II<br />

REVIEW OF THE LITERATURE ON FREIGHT TRANSPORTATION<br />

In this chapter we shall discuss some of the principal articles<br />

published on the demand <strong>for</strong> freight transportation. Empirical studies<br />

will be covered as well as papers of a purely theoretical nature.<br />

While we have attempted a wide survey and believe we have covered most<br />

of the important contributions to transport demand, this review is not<br />

meant to be exhaustive. The selected theoretical works represent steps<br />

in the advancement of understanding of basic concepts and their impli-<br />

cations; the empirical studies represent the state of the art and il-<br />

lustrate quite well present data limitations. We shall begin with the<br />

theoretical studies.<br />

Theoretical Studies of Transportation<br />

One of the earliest statements of trade equilibrium between two<br />

regions was by A. A. Cournot in 1838. 1 He asserted that when two mar-<br />

kets or regions both produce and consume a commodity the market clearing<br />

conditions when the regions were isolated would be<br />

(2.1) D a (P a ) - S a (P a ) 0, and<br />

•<br />

Db (Pb ) Sb (Pb ) 0.<br />

1. A. A. Cournot, The Mathematical hainciples of the Theory of<br />

Wealth, (1838), Ch. X; citations are from the Irwin edition, Homewood,<br />

Ill., 1963.<br />

6

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