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Striking evidence: the impact of railway strikes on competition from intercity bus services in Germany

Author

Listed:
  • Matthias Beestermöller
  • Levke Jessen-Thiesen
  • Alexander Sandkamp

Abstract

This article investigates the impact of rail service interruptions on customer switching. Using booking data on intercity bus services, we exploit regional variation in rail service cancellations during a strike to show that the disruption in rail transport increases bus ticket sales. The effect persists beyond the strike, indicating that travellers do not return to their originally preferred transport mode. It is particularly pronounced on shorter routes and among leisure passengers travelling on weekends. The findings indicate that customers were previously under-experimenting. Our results imply that incentivising experimentation can foster competition, facilitate transformative change and raise welfare.

Suggested Citation

  • Matthias Beestermöller & Levke Jessen-Thiesen & Alexander Sandkamp, 2025. "Striking evidence: the impact of railway strikes on competition from intercity bus services in Germany," Journal of Economic Geography, Oxford University Press, vol. 25(6), pages 853-872.
    • Handle: RePEc:oup:jecgeo:v:25:y:2025:i:6:p:853-872.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbaf017
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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • 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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