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Intermodal Competition in The London-Paris Passenger Market: High-Speed Rail and Air Transport


Author Info

  • Christiaan Behrens

    (VU University Amsterdam)

  • Eric Pels

    (VU University Amsterdam)


This discussion paper has led to a publication in Journal of Urban Economics , 71(3), 278-88. This paper studies inter- and intramodal competition in the London-Paris passenger market. Using revealed preference data, we estimate nested and mixed multinomial logit models to examine passenger behaviour in the London-Paris market. We present a case study on the relocation of Eurostar services from Waterloo International to St Pancras International station. The results show that competition is present in this market. Demand is elastic, and passengers are heterogeneous in their valuation of fares and accessibility. Aviation and high-speed rail are homogenous in unobserved effects. The large market share of the Eurostar and the withdrawal of aviation alternatives indicate that competition will decline in the long-run.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 09-051/3.

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Date of creation: 08 Jun 2009
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Handle: RePEc:dgr:uvatin:20090051

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Keywords: inter- and intramodal competition; nested logit; mixed logit; aviation; rail;

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Cited by:
  1. Ofelia Betancor & Juan Luis Jiménez, 2011. "When trains go faster than planes: the strategic reaction of airlines in Spain," ERSA conference papers ersa11p295, European Regional Science Association.


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