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Scheduling in On-Route Competition

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  • Peran van Reeven

Abstract

Scheduled transport operators' pricing, departure timing and frequency decisions are analysed in a horizontal product differentiation model with two dimensions. The first dimension concerns the availability of a departure at the preferred time of consumers. The second dimension concerns exogenous quality differentiation between operators' services. This model shows that operators choose intervals between their own departures that minimise consumers' waiting costs, and set prices that do not depend on the level of competition in terms of frequency. Operators do not have a strategic incentive to duplicate each other's departures and choose similar frequencies. The combined schedule of operators' individual schedules shows interlaced departures in which a departure from one operator is followed by a departure from the other. © 2006 LSE and the University of Bath

Suggested Citation

  • Peran van Reeven, 2006. "Scheduling in On-Route Competition," Journal of Transport Economics and Policy, University of Bath, vol. 40(2), pages 225-254, May.
    • Handle: RePEc:tpe:jtecpo:v:40:y:2006:i:2:p:225-254
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    Cited by:

    1. Brand, Christina & Sieg, Gernot, 2020. "The impact of delays on the welfare effects of on-track competition: The case of transfer passengers with operator-tied tickets," Research in Transportation Economics, Elsevier, vol. 80(C).
    2. Gutiérrez-Hita, Carlos & de la Cruz, Omar & Ramos-Melero, Rodolfo, 2022. "Infrastructure access charges, service differentiation, and strategic competition in the EU railway passenger market," Transportation Research Part B: Methodological, Elsevier, vol. 164(C), pages 87-104.

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