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Stable Service Patterns in Scheduled Transport Competition

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  • Peran van Reeven
  • Maarten C. W. Janssen

Abstract

In a horizontal product differentiation model, it is shown that a stable service pattern in scheduled transport competition only exists if consumers are sufficiently sensitive to the quality of non-scheduling service characteristics. Since this sensitivity is related to travel distance, the modelling results can explain why competition in local public transport results in unstable service patterns while competition in longer-distance air transport does not have the same problem. © 2006 LSE and the University of Bath

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.

Volume (Year): 40 (2006)
Issue (Month): 1 (January)
Pages: 135-160

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Handle: RePEc:tpe:jtecpo:v:40:y:2006:i:1:p:135-160

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Web page: http://www.bath.ac.uk/e-journals/jtep

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Cited by:
  1. Bataille, Marc & Steinmetz, Alexander, 2013. "Intermodal competition on some routes in transportation networks: The case of inter urban buses and railways," DICE Discussion Papers 84, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  2. Adriaan Hendrik van der Weijde & Erik T. Verhoef & Vincent A. C. van den Berg, 2012. "Hotelling Models with Price-Sensitive Demand and Asymmetric Transport Costs: An Application to Public Transport Scheduling," Tinbergen Institute Discussion Papers 12-119/VIII, Tinbergen Institute.
  3. Adriaan Hendrik van der Weijde & Erik T. Verhoef & Vincent A. C. van den Berg, 2012. "Hotelling Models with Price-Sensitive Demand and Asymmetric Transport Costs: An Application to Public Transport Scheduling," Tinbergen Institute Discussion Papers 12-119/VIII, Tinbergen Institute.

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