TITLE:
Winter Transport via Trucks with Chains and the Fraction of Time Spent in Accidents
AUTHORS:
Amitrajeet A. Batabyal
KEYWORDS:
Accident, Tire Chain, Transport, Truck, Uncertainty
JOURNAL NAME:
Theoretical Economics Letters,
Vol.5 No.6,
December
29,
2015
ABSTRACT: In this note, we analyze hitherto unstudied aspects of winter transport
provision via trucks with chains on tires. Specifically, we first construct a
discrete-time Markov chain (DTMC) model of transport provision that focuses on
the movements of a representative truck in a firm’s fleet of trucks. Second, we
specify the limiting probabilities of our DTMC model of truck transport. Third,
we derive the fraction of time that the representative truck is involved in
accidents. Finally, we solve an optimization problem whose solution tells us
when the fraction of time the representative truck spends in accidents, is
maximal.