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The provision of mobility as a service with autonomous vehicles. The necessity of regulatory schemes for a natural monopoly

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  • Bahamonde-Birke, Francisco J.
  • Goletz, Mirko
  • Ettema, Dick

Abstract

This paper addresses the provision of Mobility-as-a-Service (MaaS) once autonomous vehicles become available, putting special emphasis on the cost structures of MaaS-providers. The results show the existence of significant economies of scale and, therefore, the market is likely to become a natural monopoly. The difference with the current situation is explained by the absence of a driver and it provides an explanation for the aggressive and deficitary expansion strategies of current TNC providers. Furthermore, given that natural monopolies require regulation in order to avoid losses of social welfare, the paper considers five different regulation scenarios. For this purpose, we also take into account the existence of negative and positive externalities as well as other issues specific to the provision of MaaS, such as spatio-temporal considerations and complementarity/competition with other transport modes.

Suggested Citation

  • Bahamonde-Birke, Francisco J. & Goletz, Mirko & Ettema, Dick, 2021. "The provision of mobility as a service with autonomous vehicles. The necessity of regulatory schemes for a natural monopoly," Research in Transportation Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:retrec:v:90:y:2021:i:c:s0739885920301918
    DOI: 10.1016/j.retrec.2020.100993
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    References listed on IDEAS

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    1. Joskow, Paul L., 2007. "Regulation of Natural Monopoly," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 16, pages 1227-1348, Elsevier.
    2. Judd Cramer & Alan B. Krueger, 2016. "Disruptive Change in the Taxi Business: The Case of Uber," American Economic Review, American Economic Association, vol. 106(5), pages 177-182, May.
    3. Fagnant, Daniel J. & Kockelman, Kara, 2015. "Preparing a nation for autonomous vehicles: opportunities, barriers and policy recommendations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 167-181.
    4. Evans, A., 1991. "Are Urban Bus Services Natural Monopolies?," Papers 90-19, Flinders of South Australia - Discipline of Economics.
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    More about this item

    Keywords

    Autonomous vehicles; MaaS; Regulation; Ride sourcing; JEL; R41;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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