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What Drive HSR' Prices and Frequencies? An Analysis of Intermodal Competition and Multiproduct Incumbent's Strategies in the French Market

Author

Listed:
  • Thierry Blayac

    (CEE-M, Univ Montpellier, CNRS, INRAE, Institut Agro, Montpellier, France)

  • Patrice Bougette

    (Université Côte d'Azur
    GREDEG, CNRS, France)

  • Florent Laroche

    (Université Lyon 2
    LAET, CNRS, France)

Abstract

This paper provides an empirical analysis of the determinants of service prices and frequencies of conventional high-speed rail (HSR) in France. We use original data for the period 09/2019-03/2020 and consider the intensity of intermodal competition and the diversification strategy of the incumbent rail operator. The main econometric results show that the determinants of the price per kilometer of conventional HSR services (1st and 2nd class) are partly common (especially for the variables explaining the technical characteristics of the routes and the alternative offer) and partly specific (competitive environment, economic and demographic environment). Frequencies depend mainly on travel time. On the routes for which the conventional HSR does not provide a quality service (frequency and/or price), a complementary alternative offer compensates the low frequency of conventional HSR services.

Suggested Citation

  • Thierry Blayac & Patrice Bougette & Florent Laroche, 2023. "What Drive HSR' Prices and Frequencies? An Analysis of Intermodal Competition and Multiproduct Incumbent's Strategies in the French Market," GREDEG Working Papers 2023-01, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2023-01
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    References listed on IDEAS

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    1. Bergantino, Angela Stefania & Madio, Leonardo, 2020. "Intermodal competition and substitution. HSR versus air transport: Understanding the socio-economic determinants of modal choice," Research in Transportation Economics, Elsevier, vol. 79(C).
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    4. Crozet, Yves & Chassagne, Florian, 2013. "Rail access charges in France: Beyond the opposition between competition and financing," Research in Transportation Economics, Elsevier, vol. 39(1), pages 247-254.
    5. Zhang, Rui & Johnson, Daniel & Zhao, Weiming & Nash, Chris, 2019. "Competition of airline and high-speed rail in terms of price and frequency: Empirical study from China," Transport Policy, Elsevier, vol. 78(C), pages 8-18.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    HSR; Intermodal competition; Multiproduct firms' strategies; Low-cost transportation; France;
    All these keywords.

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