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High-Speed Rail & Air Transport Competition

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Author Info

  • Nicole Adler

    ()
    (Hebrew University of Jerusalem, Israel)

  • Chris Nash

    (Institute for Transport Studies, Leeds, England)

  • Eric Pels

    ()
    (VU University Amsterdam)

Abstract

This paper develops a methodology to assess transport infrastructure investments and their effects on a Nash equilibria taking into account competition between multiple privatized transport operator types. The operators, including high-speed rail, hub and spoke legacy airlines and low cost carriers, maximize profit functions via prices, frequency and train/plane sizes, given infrastructure provision and costs and environmental charges. The methodology is subsequently applied to all 27 European Union countries, specifically analyzing four of the prioritized Trans-European Networks.

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File URL: http://papers.tinbergen.nl/08103.pdf
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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 08-103/3.

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Date of creation: 31 Oct 2008
Date of revision:
Handle: RePEc:dgr:uvatin:20080103

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Web page: http://www.tinbergen.nl

Related research

Keywords: airlines; high-speed rail; networks; applied game theory; infrastructure pricing;

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References

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  1. Harvey S. Rosen & Kenneth A. Small, 1979. "Applied Welfare Economics with Discrete Choice Models," NBER Working Papers 0319, National Bureau of Economic Research, Inc.
  2. Brons, Martijn & Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2002. "Price elasticities of demand for passenger air travel: a meta-analysis," Journal of Air Transport Management, Elsevier, vol. 8(3), pages 165-175.
  3. Nijkamp, Peter, 1995. "From missing networks to interoperable networks : The need for European cooperation in the railway sector," Transport Policy, Elsevier, vol. 2(3), pages 159-167, July.
  4. Roger Vickerman, 1997. "High-speed rail in Europe: experience and issues for future development," The Annals of Regional Science, Springer, vol. 31(1), pages 21-38.
  5. Economides, Nicholas & Salop, Steven C, 1992. "Competition and Integration among Complements, and Network Market Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 105-23, March.
  6. CALTHROP, Edward & DE BORGER, Bruno & PROOST, Stef, 2008. "Cost-benefit analysis of transport investments in distorted economies," Working Papers 2008011, University of Antwerp, Faculty of Applied Economics.
  7. David Gillen & David Levinson & Jean Michel Mathieu & Adib Kanafani, 1997. "The full cost of high-speed rail: an engineering approach," The Annals of Regional Science, Springer, vol. 31(2), pages 189-215.
  8. Román, Concepción & Espino, Raquel & Martín, Juan Carlos, 2007. "Competition of high-speed train with air transport: The case of Madrid–Barcelona," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 277-284.
  9. Ginés de Rus & Gustavo Nombela, 2007. "Is Investment in High Speed Rail Socially Profitable?," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 41(1), pages 3-23, January.
  10. Martijn Brons & Eric Pels & Peter Nijkamp & Piet Rietveld, 2001. "Price Elasticities of Demand for Passenger Air Travel," Tinbergen Institute Discussion Papers 01-047/3, Tinbergen Institute.
  11. Bent Flyvbjerg & Mette K. Skamris Holm & S�Ren L. Buhl, 2003. "What Causes Cost Overrun in Transport Infrastructure Projects?," Transport Reviews, Taylor & Francis Journals, vol. 24(1), pages 3-18, January.
  12. van Exel, Job & Rienstra, Sytze & Gommers, Michael & Pearman, Alan & Tsamboulas, Dimitrios, 2002. "EU involvement in TEN development: network effects and European value added," Transport Policy, Elsevier, vol. 9(4), pages 299-311, October.
  13. Adler, Nicole, 2001. "Competition in a deregulated air transportation market," European Journal of Operational Research, Elsevier, vol. 129(2), pages 337-345, March.
  14. Sichelschmidt, H., 1999. "The EU programme "trans-European networks"--a critical assessment," Transport Policy, Elsevier, vol. 6(3), pages 169-181, July.
  15. Hansen, Mark, 1990. "Airline competition in a hub-dominated environment: An application of noncooperative game theory," Transportation Research Part B: Methodological, Elsevier, vol. 24(1), pages 27-43, February.
  16. Vicente Inglada & GinÊs de Rus, 1997. "Cost-benefit analysis of the high-speed train in Spain," The Annals of Regional Science, Springer, vol. 31(2), pages 175-188.
  17. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2000. "Airport and Airline Competition for Passengers Departing from a Large Metropolitan Area," Journal of Urban Economics, Elsevier, vol. 48(1), pages 29-45, July.
  18. Mar González-Savignat, 2004. "Competition in Air Transport," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 38(1), pages 77-107, January.
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Citations

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Cited by:
  1. Pierre Zembri, 2011. "The new purposes of the French High-speed rail system in the framework of a centralized network : a substitute to the domestic Air Transport market ?," ERSA conference papers ersa10p1582, European Regional Science Association.
  2. FrÈdÈric Dobruszkes, 2011. "Airline and high-speed rail competition in Europe: towards a comeback of air transport?," ERSA conference papers ersa10p180, European Regional Science Association.

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