Economies of scale and scope in local public transportation
AbstractThe purpose of this study is to analyze the cost structure of a sample of Swiss multi-modal urban transport operators in order to assess economies of scale and scope. The results suggest that the industry is characterized by increasing returns to scale and economies of scope. Several European countries have introduced a competitive tendering procedure in the assignment of franchised monopoly in the local transport industry. In the case of multi-modal systems the regulator has to decide to open the competitive tendering procedure for supplying the entire transport services or to unbundle the multi-modal systems and open separate tenders for different modes of transport. In order to make the decision the regulator should have information on the economies of scope. Only few studies have addressed the issue of scope economies in local transport systems.
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Bibliographic InfoPaper provided by CEPE Center for Energy Policy and Economics, ETH Zurich in its series CEPE Working paper series with number 06-48.
Length: 16 pages
Date of creation: Apr 2006
Date of revision:
Other versions of this item:
- Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2007. "Economies of Scale and Scope in Local Public Transportation," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 41(3), pages 345-361, September.
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- Viton, Philip A., 1992. "Consolidations of scale and scope in urban transit," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 25-49, March.
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- Mehdi Farsi & Massimo Filippini & Michael Kuenzle, 2004.
"Cost Efficiency in Regional Bus Companies: An Application of Alternative Stochastic Frontier Models,"
CEPE Working paper series
04-33, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Mehdi Farsi & Massimo Filippini & Michael Kuenzle, 2006. "Cost Efficiency in Regional Bus Companies: An Application of Alternative Stochastic Frontier Models," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 40(1), pages 95-118, January.
- David W. Gillen & Tae Hoon Oum, 1984. "A Study of the Cost Structures of the Canadian Intercity Motor Coach Industry," Canadian Journal of Economics, Canadian Economics Association, vol. 17(2), pages 369-85, May.
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- Massimo Filippini & Paola Prioni, 2003. "The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration," Applied Economics, Taylor & Francis Journals, vol. 35(6), pages 683-690.
- Massimo Filippini & Paola Prioni, 1994. "Is Scale and Cost Inefficiency in the Swiss Bus Industry a Regulatory Problem? Evidence from a Frontier Cost Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(2), pages 219-232.
- Giovanni Fraquelli & Massimiliano Piacenza & Graziano Abrate, 2004. "Regulating Public Transit Networks: How do Urban-Intercity Diversification and Speed-up Measures Affect Firms' Cost Performance?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(2), pages 193-225, 06.
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- Judy Shaw-Er & Wang Chiang & Ya-Wen Chen, 2005. "Cost structure and technological change of local public transport: the Kaohsiung City Bus case," Applied Economics, Taylor & Francis Journals, vol. 37(12), pages 1399-1410.
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