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Competition for Railway Markets: The Case of Baden-Württemberg

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  • Lalive, Rafael
  • Schmutzler, Armin

Abstract

This paper studies the effects of introducing competition for local passenger railway markets in the German state of Baden-Württemberg. We compare the evolution of the frequency of service on lines that were exposed to competition for the market and lines that were not. Our results suggest that the competitively procured lines enjoyed a stronger growth of the frequency of service than those that were not procured competitively, even after controlling for various line characteristics that might have an independent influence on the frequency of service. Our results further suggest that the effects of competition may depend strongly on the operator.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5396.

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Date of creation: Dec 2005
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Handle: RePEc:cpr:ceprdp:5396

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Related research

Keywords: competition for the market; liberalization; passenger railways; procurement auctions;

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References

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  1. Buehler, Stefan & Schmutzler, Armin & Benz, Men-Andri, 2004. "Infrastructure quality in deregulated industries: is there an underinvestment problem?," International Journal of Industrial Organization, Elsevier, vol. 22(2), pages 253-267, February.
  2. Jacob K. Goeree & Theo Offerman, 2003. "Competitive Bidding in Auctions with Private and Common Values," Economic Journal, Royal Economic Society, vol. 113(489), pages 598-613, 07.
  3. Friebel, Guido & Ivaldi, Marc & Vibes, Catherine, 2004. "Railway (De)Regulation: A European Efficiency Comparison," CEPR Discussion Papers 4319, C.E.P.R. Discussion Papers.
  4. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, January.
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Citations

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Cited by:
  1. Hans Gersbach & Armin Schmutzler, 2011. "Foreign direct investment and R&D-offshoring," Oxford Economic Papers, Oxford University Press, vol. 63(1), pages 134-157, January.
  2. Stefan Boes & Markus Lipp & Rainer Winkelmann, 2005. "Money Illusion Under Test," SOI - Working Papers 0514, Socioeconomic Institute - University of Zurich.
  3. Patrick Eugster & Peter Zweifel, 2006. "Correlated Risks: A Conflict of Interest Between Insurers and Consumers and Its Resolution," SOI - Working Papers 0604, Socioeconomic Institute - University of Zurich.
  4. Dennis L. Gärtner & Daniel Halbheer, 2008. "Are There Waves in Merger Activity After All?," Working Papers 0092, University of Zurich, Institute for Strategy and Business Economics (ISU).
  5. Dennis Gaertner & Armin Schmutzler, 2006. "Merger Negotiations and Ex-Post Regret," SOI - Working Papers 0607, Socioeconomic Institute - University of Zurich, revised Dec 2007.
  6. Schmutzler, Armin, 2011. "A unified approach to comparative statics puzzles in experiments," Games and Economic Behavior, Elsevier, vol. 71(1), pages 212-223, January.
  7. Boris Krey & Peter Zweifel, 2006. "Efficient Electricity Portfolios for Switzerland and the United States," SOI - Working Papers 0602, Socioeconomic Institute - University of Zurich.
  8. Lalive Rafael & Schmutzler Armin, 2008. "Entry in Liberalized Railway Markets: The German Experience," Review of Network Economics, De Gruyter, vol. 7(1), pages 1-16, March.
  9. Hans Gersbach & Armin Schmutzler, 2006. "A Product-Market Theory of Industry-Specific Training," SOI - Working Papers 0610, Socioeconomic Institute - University of Zurich.

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