Abstract Many of air cargo companies adapt the hub-and-spokes system where economies of scale exist in the transportation cost. In this paper, we formulate economies of scale using nonlinear cost function of distances and demands, and analyze how the change of the transportation cost affects single hub location of air cargo using the generalized Weber problem on the regular demand points of one...

In the traditional treatment, economies of scale are attributed to a hodgepodge of sources. A typical list might include Adam Smith's famous "division of labour," economies of large machines, the integration of processes, massed reserves, and standardization. The list can be partly systematized because, when considered in detail, these various economies are themselves the result of various othe...

This paper reports estimates of overall and product specific economies of scale, as well as, economies of scope for the main outputs of the life insurance industry. In addition, the paper presents a number of structural tests of the production technology. The results indicate that the estimated cost function satisfies the regularity conditions, and that the industry exhibits overall and product...

This paper investigates the existence and extent of economies of scale in depository and settlement systems. Evidence from 16 settlement institutions across different regions for the years 1993–2000 indicates the existence of significant economies of scale. The degree of such economies, however, differs by size of settlement institution and region. While smaller settlement service providers rev...