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An analysis of the competition that impinges on the Milan–Rome intercity passenger transport link

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  • Mancuso, Paolo

Abstract

This paper presents a simulation based on the discrete choice model, and a limited set of data to analyse the passenger market on the Milan–Rome intercity transport link. Considered in the analysis are market shares of both incumbents and new entrants, as well as consumer surplus and environmental costs. The link, which is the second largest intra-European connection, has been characterized by a low degree of competition in both rail and air transport services. The entry of new rail and air operators in 2012, however, will likely reshape market characteristics. The current paper argues the following: (i) most of the benefit in consumer surplus will stem from the introduction of competition in high speed rail; (ii) increased connections will result in increased environmental costs, which will partially offset the larger consumer surplus; and (iii) a reduction in the difference between airline and rail companies involving the costs of infrastructure access and security could lead to more fair forms of competition between airline and rail companies, but it generates a worst environment state.

Suggested Citation

  • Mancuso, Paolo, 2014. "An analysis of the competition that impinges on the Milan–Rome intercity passenger transport link," Transport Policy, Elsevier, vol. 32(C), pages 42-52.
  • Handle: RePEc:eee:trapol:v:32:y:2014:i:c:p:42-52
    DOI: 10.1016/j.tranpol.2013.12.013
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    Cited by:

    1. Gremm, Cornelia & Bälz, David & Corbo, Chris & Mitusch, Kay, 2019. "Intermodal competition between intercity buses and trains: A theoretical model," Working Paper Series in Economics 135, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
    2. Desmaris, Christian & Croccolo, Fabio, 2018. "The HSR competition in Italy: How are the regulatory design and practices concerned?," Research in Transportation Economics, Elsevier, vol. 69(C), pages 290-299.
    3. Fröidh, Oskar & Nelldal, Bo-Lennart, 2015. "The impact of market opening on the supply of interregional train services," Journal of Transport Geography, Elsevier, vol. 46(C), pages 189-200.

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