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Diversification strategies and scope economies: evidence from a sample of Italian regional bus transport providers

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  • Elisabetta Ottoz
  • Marina Di Giacomo

Abstract

A growing number of Local Public Transport (LPT) companies diversify their production lines by providing a large set of services. We investigate the cost structure of a sample of LPT companies operating in Italy and assess the presence and the magnitude of scope economies. We split the whole sample of firms according to their diversification strategy: private firms, mainly diversifying in competitive transport related services and public firms providing nontransport services in regulated markets. Scope economies appear sizeable for both groups but higher for firms pursuing a transport related strategy, suggesting caution in the multiutility development pursued by public LPT firms in Italy.

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File URL: http://hdl.handle.net/10.1080/00036846.2011.568399
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 44 (2012)
Issue (Month): 22 (August)
Pages: 2867-2880

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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2867-2880

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