- OXFORD UNIV PRESS
The spatial structure of transport network is subject to increasing returns in transportation, distance and density economies. Transport costs between locations are thus in general endogenous, and are determined by the interaction between the spatial distribution of transport demand and these increasing returns, although such interdependence has long been ignored in regional models. By using a simple model, the present article investigates the characteristics of viable hub structures (in terms of spacing and hierarchical relations) given the presence of density and distance economies in transportation.
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