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Intermodal competition: studying the pricing strategy of the French rail monopoly

Author

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  • Patricia Perennes

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

In most countries, passengers' rail transportation is characterized by a monopoly. Nevertheless, it does not mean that the monopolist-usually the national company-does not face competition, in the form of intermodal competition (planes, cars). This article focuses on the French national rail company (SNCF) that still has a monopoly on national passenger traffic. It analyses SNCF's pricing behavior on most of the origin/destination pairs it operates with high speed trains to/from Paris. It takes into account the fact SNCF enjoys a limited leeway to set its prices because ticket prices are still regulated in France. The existence of such a price cap regulation is an opportunity for an economist to analyse how a transportation company facing intermodal competition sets its prices. Usually, such an analysis is hard to conduct since transport prices are set following yield management principles.

Suggested Citation

  • Patricia Perennes, 2014. "Intermodal competition: studying the pricing strategy of the French rail monopoly," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01272287, HAL.
    • Handle: RePEc:hal:cesptp:hal-01272287
    Note: View the original document on HAL open archive server: https://hal.science/hal-01272287
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    Cited by:

    1. Angela S. Bergantino & Claudia Capozza & Mauro Capurso, 2018. "Pricing strategies: who leads and who follows in the air and rail passenger markets in Italy," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4937-4953, October.
    2. Gremm, Cornelia, 2018. "The effect of intermodal competition on the pricing behaviour of a railway company: Evidence from the German case," Research in Transportation Economics, Elsevier, vol. 72(C), pages 49-64.

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    Keywords

    Railroad; pricing strategy; intermodal competition;
    All these keywords.

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