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Intermodal and Intramodal Competition in Passenger Rail Transport

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Author Info

  • Ivaldi, Marc
  • Vibes, Catherine

Abstract

The objective of the paper is to elaborate a simulation model to analyse inter and intra-modal competition in the transport industry, based on game theory models. In our setting, consumers choose a transport mode and an operator to travel on a given city-pair; operators strategically decide on prices for the types of service they provide. We derive the market equilibrium and simulate potential scenarios. In particular we measure the impact of entry by a low cost train operator and the effect of a kerosene tax. Hence our framework could serve as a tool to measure the effectiveness of competition on a relevant market or to design marketing strategies. More generally it can be applied in cases of oligopolistic competition when detailed data are not available.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5004.

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Date of creation: Apr 2005
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Handle: RePEc:cpr:ceprdp:5004

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Related research

Keywords: product differentiation; relevant transport market; simulation model;

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References

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  1. Ivaldi, Marc & Verboven, Frank, 2005. "Quantifying the effects from horizontal mergers in European competition policy," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 669-691, December.
  2. repec:cup:cbooks:9780521816632 is not listed on IDEAS
  3. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
  4. Ivaldi, Marc & Pouyet, Jérôme & de Villemeur, Étienne, 2003. "Entry in the Passenger Rail Industry : A Theoretical Investigation," IDEI Working Papers 192, Institut d'Économie Industrielle (IDEI), Toulouse.
  5. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
  6. Tae H. Oum & Waters, W.G. & Jong Say Yong, 1990. "A survey of recent estimates of price elasticities of demand for transport," Policy Research Working Paper Series 359, The World Bank.
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Citations

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Cited by:
  1. Emile QUINET, 2006. "Transport cost benefit analysis in France: Recent changes, progress and shortcomings," Departmental Working Papers 2006-22, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  2. Fröidh, Oskar & Byström, Camilla, 2013. "Competition on the tracks – Passengers’ response to deregulation of interregional rail services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 56(C), pages 1-10.
  3. Chiambaretto, Paul & Decker, Christopher, 2012. "Air–rail intermodal agreements: Balancing the competition and environmental effects," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 36-40.
  4. Marc Ivaldi, 2005. "Restructuring Railways: In Theory and Practice," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 3(4), pages 3-9, 01.

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