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A duopoly of transportation network companies and traditional radio-taxi dispatch service agencies

Author

Listed:
  • Thorsten Heilker

    (Institute of Transport Economics, Muenster)

  • Gernot Sieg

    (Institute of Transport Economics, Muenster)

Abstract

Transportation network companies commonly enter the market for taxi ride intermediation and alter the market outcome. Compared to cooperatively organized radio-taxi dispatch service agencies, transportation network companies run larger fleets and serve more customers with lower fares, when the fixed costs of the dispatch office are relatively small. The same holds for private dispatch firms, when the fixed costs of a taxicab are not too small. These results are shown in a two-stage duopoly of fare and fleet size competition with fare- and waiting-time-dependent demand.

Suggested Citation

  • Thorsten Heilker & Gernot Sieg, 2017. "A duopoly of transportation network companies and traditional radio-taxi dispatch service agencies," Working Papers 24, Institute of Transport Economics, University of Muenster.
    • Handle: RePEc:mut:wpaper:24
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    digitization; regulatory capture; taxi dispatch market; transportation network companies;
    All these keywords.

    JEL classification:

    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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