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Stable Service Patterns in Scheduled Transport Competition

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  • Peran van Reeven
  • Maarten C. W. Janssen

Abstract

In a horizontal product differentiation model, it is shown that a stable service pattern in scheduled transport competition only exists if consumers are sufficiently sensitive to the quality of non-scheduling service characteristics. Since this sensitivity is related to travel distance, the modelling results can explain why competition in local public transport results in unstable service patterns while competition in longer-distance air transport does not have the same problem. © 2006 LSE and the University of Bath

Suggested Citation

  • Peran van Reeven & Maarten C. W. Janssen, 2006. "Stable Service Patterns in Scheduled Transport Competition," Journal of Transport Economics and Policy, University of Bath, vol. 40(1), pages 135-160, January.
  • Handle: RePEc:tpe:jtecpo:v:40:y:2006:i:1:p:135-160
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    Cited by:

    1. Vigren, Andreas, 2016. "Competition in Swedish passenger railway : entry in an open-access market," Working papers in Transport Economics 2016:18, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    2. Adriaan Hendrik van der Weijde & Erik T. Verhoef & Vincent A. C. van den Berg, 2012. "Hotelling Models with Price-Sensitive Demand and Asymmetric Transport Costs: An Application to Public Transport Scheduling," Tinbergen Institute Discussion Papers 12-119/VIII, Tinbergen Institute.
    3. Philippe Gagnepain & Marc Ivaldi & Catherine Muller-Vibes, 2011. "The Industrial Organization of Competition in Local Bus Services," Chapters,in: A Handbook of Transport Economics, chapter 32 Edward Elgar Publishing.
    4. Bataille, Marc & Steinmetz, Alexander, 2013. "Intermodal competition on some routes in transportation networks: The case of inter urban buses and railways," DICE Discussion Papers 84, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

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