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High-speed rail and air transport competition: Game engineering as tool for cost-benefit analysis

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  • Adler, Nicole
  • Pels, Eric
  • Nash, Chris
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    Abstract

    This research develops a methodology to assess infrastructure investments and their effects on transport equilibria taking into account competition between multiple privatized transport operator types. The operators, including high-speed rail, hub-and-spoke legacy airlines and regional low-cost carriers, maximize best response functions via prices, frequency and train/plane sizes, given infrastructure provision, cost functions and environmental charges. The methodology is subsequently applied to all 27 European Union countries, specifically analyzing four of the prioritized Trans-European networks. The general conclusions suggest that the European Union, if interested in maximizing overall social welfare, should encourage the development of the high-speed rail network across Europe.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 44 (2010)
    Issue (Month): 7 (August)
    Pages: 812-833

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    Handle: RePEc:eee:transb:v:44:y:2010:i:7:p:812-833

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    Related research

    Keywords: Airlines High-speed rail Network optimization Applied game theory Infrastructure pricing;

    References

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    Citations

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    Cited by:
    1. Yang, Hangjun & Zhang, Anming, 2012. "Effects of high-speed rail and air transport competition on prices, profits and welfare," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1322-1333.
    2. Eliasson, Jonas & Börjesson, Maria, 2013. "On timetable assumptions in railway investment appraisal," Working papers in Transport Economics 2013:31, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    3. Pellegrini, Paola & Rodriguez, Joaquin, 2013. "Single European Sky and Single European Railway Area: A system level analysis of air and rail transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 57(C), pages 64-86.
    4. Behrens, Christiaan & Pels, Eric, 2012. "Intermodal competition in the London–Paris passenger market: High-Speed Rail and air transport," Journal of Urban Economics, Elsevier, vol. 71(3), pages 278-288.
    5. Dobruszkes, Frédéric, 2011. "High-speed rail and air transport competition in Western Europe: A supply-oriented perspective," Transport Policy, Elsevier, vol. 18(6), pages 870-879, November.
    6. Adler, Nicole & Gellman, Aaron, 2012. "Strategies for managing risk in a changing aviation environment," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 24-35.
    7. Feng, Xuesong, 2011. "Optimization of target speeds of high-speed railway trains for traction energy saving and transport efficiency improvement," Energy Policy, Elsevier, vol. 39(12), pages 7658-7665.

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