Diversification strategies and scope economies: evidence from a sample of Italian regional bus transport providers
A growing number of Local Public Transport (LPT) companies diversify their production lines by providing a large set of services. We investigate the cost structure of a sample of LPT companies operating in Italy and assess the presence and the magnitude of scope economies. We split the whole sample of firms according to their diversification strategy: private firms, mainly diversifying in competitive transport related services and public firms providing nontransport services in regulated markets. Scope economies appear sizeable for both groups but higher for firms pursuing a transport related strategy, suggesting caution in the multiutility development pursued by public LPT firms in Italy.
Volume (Year): 44 (2012)
Issue (Month): 22 (August)
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McKenzie, David J & Small, John P, 1997. "Econometric Cost Structure Estimates for Cellular Telephony in the United States," Journal of Regulatory Economics, Springer, vol. 12(2), pages 147-57, September.
- Bloch, Harry & Madden, Gary G & Savage, Scott J, 2001.
"Economies of scale and scope in Australian telecommunications,"
11154, University Library of Munich, Germany.
- Harry Bloch & Gary Madden & Scott Savage, 2001. "Economies of Scale and Scope in Australian Telecommunications," Review of Industrial Organization, Springer, vol. 18(2), pages 219-227, March.
- Robert M. Adams & Paul W. Bauer & Robin C. Sickles, 2002.
"Scale economies, scope economies, and technical change in Federal Reserve payment processing,"
Finance and Economics Discussion Series
2002-57, Board of Governors of the Federal Reserve System (U.S.).
- Adams, Robert M & Bauer, Paul W & Sickles, Robin C, 2004. "Scale Economies, Scope Economies, and Technical Change in Federal Reserve Payment Processing," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(5), pages 943-58, October.
- Giovanni Fraquelli & Massimiliano Piacenza & Davide Vannoni, 2005. "Cost Savings From Generation and Distribution with an Application to Italian Electric Utilities," Journal of Regulatory Economics, Springer, vol. 28(3), pages 289-308, November.
- repec:cup:cbooks:9780521848053 is not listed on IDEAS
- Piacenza, Massimiliano & Vannoni, Davide, 2004. "Choosing among alternative cost function specifications: an application to Italian multi-utilities," Economics Letters, Elsevier, vol. 82(3), pages 415-422, March.
- Roller, Lars-Hendrik, 1990. "Proper Quadratic Cost Functions with an Application to the Bell System," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 202-10, May.
- Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2007.
"Economies of Scale and Scope in Local Public Transportation,"
Journal of Transport Economics and Policy,
London School of Economics and University of Bath, vol. 41(3), pages 345-361, September.
- Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2006. "Economies of scale and scope in local public transportation," CEPE Working paper series 06-48, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Diewert, Walter E & Wales, Terence J, 1987.
"Flexible Functional Forms and Global Curvature Conditions,"
Econometric Society, vol. 55(1), pages 43-68, January.
- W. Erwin Diewert & T.J. Wales, 1989. "Flexible Functional Forms and Global Curvature Conditions," NBER Technical Working Papers 0040, National Bureau of Economic Research, Inc.
- McKillop, Donal G. & Glass, J. Colin & Morikawa, Yukio, 1996. "The composite cost function and efficiency in giant Japanese banks," Journal of Banking & Finance, Elsevier, vol. 20(10), pages 1651-1671, December.
- Pulley, Lawrence B & Braunstein, Yale M, 1992. "A Composite Cost Function for Multiproduct Firms with an Application to Economies of Scope in Banking," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 221-30, May.
- Viton, Philip A., 1992. "Consolidations of scale and scope in urban transit," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 25-49, March.
- Asai, Sumiko, 2006. "Scale economies and scope economies in the Japanese broadcasting market," Information Economics and Policy, Elsevier, vol. 18(3), pages 321-331, September.
- Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2007. "Economies of Scale and Scope in the Swiss Multi-Utilities Sector," CEPE Working paper series 07-59, CEPE Center for Energy Policy and Economics, ETH Zurich.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:44:y:2012:i:22:p:2867-2880. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.