High-speed rail and air transport competition: Game engineering as tool for cost-benefit analysis
AbstractThis 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 InfoArticle provided by Elsevier in its journal Transportation Research Part B: Methodological.
Volume (Year): 44 (2010)
Issue (Month): 7 (August)
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