Logo
Munich Personal RePEc Archive

Travel Circle: A Model of Supply Chains

Lau, C. Oscar (2022): Travel Circle: A Model of Supply Chains.

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_115291.pdf]
Preview
PDF
MPRA_paper_115291.pdf

Download (1MB) | Preview

Abstract

Travel circle is a metaphor for supply chains: in travel circle, travelers are transported by carriers in multiple legs from the center to diverse destinations on the circumference; in supply chains, goods are transformed in multiple stages by firms from natural resources into differentiated products. The model is generated using only three cost parameters. At the start of supply chains, a few firms mass-produce standardized commodities at low unit costs; at the end, many firms produce distinctive products in small scales at high unit costs. As an extension, the circle’s size is endogenized to account for consumers’ preferences for varieties.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.