Open Conference Systems, 16th SGBED & XII ESPM International Conference in Management

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Inter-regional impacts of freight behavior: a computable general equilibrium application for Brazil agriproducts
Guilherme Asai, Carlos Alberto Piacenti, Angelo Costa Gurgel

Last modified: 2019-03-29

Abstract


While e-commerce and smartphones apps have changed the way how many consumers buy goods and services, the purchase of a physical product still generates a demand through a production chain (to assemble the product) and a logistics chain to deliver the product from a provider to a consumer, even more if the product is perishable. The freight component of this consumption signal is variable depending on the place, the product, the periodicity, the perishability, the transport used, and all these costs will affect the final delivered price that will influence not only the consumer’s decision to buy or not buy the product but also from which supplier (location). Hence, the competitiveness of a product no longer depends on the retail price but also the transportation (freight) delivery margin. Thus, spatial competition may take on a much more complicated decision-making process than two decades ago where the choice was restricted to some finite set of locations. Yet, the paper aims to understand what happen to the goods consumption (price, export and import) for agriproducts due to freight variation. In order to investigate this, a case study for Brazil is proposed, by using a general equilibrium model which will be modified to fit the transportation services on behalf of freight, that’s will provide alternatives to freight modelling given an alternative consumption options that differ from traditional models abroad.


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