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The Relevance of Scale and Scope Economies in the Provision of Urban and Intercity Bus Transport

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  • Marina Di Giacomo
  • Elisabetta Ottoz

Abstract

The relevance of scope economies is central in the unbundling of competitive tendering introduced for the assignment of franchised monopolies in LPT services, concerning either urban or intercity local transport. We present a number of different cost specifications. The separable quadratic and the composite models allow zero outputs to be directly handled and the data to be better fitted. Moderate global scope economies are found (around 2 per cent). By splitting global scope economies into its two components (fixed cost and cost complementarities savings), we find that fixed cost savings can be obtained from joint production. Density economies and scale economies are also detected. © 2010 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 (JTEP).

Volume (Year): 44 (2010)
Issue (Month): 2 (May)
Pages: 161-187

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Handle: RePEc:tpe:jtecpo:v:44:y:2010:i:2:p:161-187

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

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Cited by:
  1. Cambini Carlo & Filippini Massimo & Piacenza Massimiliano & Vannoni Davide, 2011. "Corporatization and Firm Performance: Evidence from Publicly-Provided Local Utilities," Review of Law & Economics, De Gruyter, vol. 7(1), pages 191-213, July.
  2. Andrea Boitani & Marcella Nicolini & Carlo Scarpa, 2013. "Do competition and ownership matter? Evidence from local public transport in Europe," Applied Economics, Taylor & Francis Journals, vol. 45(11), pages 1419-1434, April.

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