Competing Transport Networks
AbstractIn a circular city model, I consider network design and pricing decisions for asingle fast transport connection that faces competition from a slower but betteraccessible transport mode. To access the fast transport network individuals haveto make complementary trips by slow mode. This fact has interesting implicationson the location decisions. I show that in the presence of competition the profit-maximizingand socially optimal decision would be to cluster the two stations. Bycontrast, in the absence of competition both a profit-maximizing firm and a socialplanner would locate the two stations on opposite sides of the circle.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 03-009/1.
Date of creation: 23 Jan 2003
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Networks; Transportation; Competition; Market area; Circular city.;
Find related papers by JEL classification:
- L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
- D40 - Microeconomics - - Market Structure and Pricing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-27 (All new papers)
- NEP-COM-2003-04-27 (Industrial Competition)
- NEP-GEO-2003-04-27 (Economic Geography)
- NEP-URE-2003-04-27 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Britta Hoyer & Kris De Jaegher, 2010. "Strategic Network Disruption and Defense," Working Papers 10-13, Utrecht School of Economics.
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