Economies of scale and scope in local public transportation
The purpose of this study is to analyze the cost structure of a sample of Swiss multi-modal urban transport operators in order to assess economies of scale and scope. The results suggest that the industry is characterized by increasing returns to scale and economies of scope. Several European countries have introduced a competitive tendering procedure in the assignment of franchised monopoly in the local transport industry. In the case of multi-modal systems the regulator has to decide to open the competitive tendering procedure for supplying the entire transport services or to unbundle the multi-modal systems and open separate tenders for different modes of transport. In order to make the decision the regulator should have information on the economies of scope. Only few studies have addressed the issue of scope economies in local transport systems.
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- Bailey, Elizabeth E & Friedlaender, Ann F, 1982. "Market Structure and Multiproduct Industries," Journal of Economic Literature, American Economic Association, vol. 20(3), pages 1024-1048, September.
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- Mehdi Farsi & Massimo Filippini & Michael Kuenzle, 2006.
"Cost Efficiency in Regional Bus Companies: An Application of Alternative Stochastic Frontier Models,"
Journal of Transport Economics and Policy,
University of Bath, vol. 40(1), pages 95-118, January.
- Mehdi Farsi & Massimo Filippini & Michael Kuenzle, 2004. "Cost Efficiency in Regional Bus Companies: An Application of Alternative Stochastic Frontier Models," CEPE Working paper series 04-33, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Youn Kim, H. & Clark, Robert M., 1988. "Economies of scale and scope in water supply," Regional Science and Urban Economics, Elsevier, vol. 18(4), pages 479-502, November.
- C. Cambini & M. Filippini, 2003. "Competitive Tendering and Optimal Size in the Regional Bus Transportation Industry: An Example from Italy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 74(1), pages 163-182, 03.
- Button, K J & O'Donnell, K J, 1985. "An Examination of the Cost Structures Associated with Providing Urban Bus Services in Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(1), pages 67-81, February.
- Giovanni Fraquelli & Massimiliano Piacenza & Graziano Abrate, 2004. "Regulating Public Transit Networks: How do Urban-Intercity Diversification and Speed-up Measures Affect Firms' Cost Performance?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(2), pages 193-225, 06.
- Judy Shaw-Er & Wang Chiang & Ya-Wen Chen, 2005. "Cost structure and technological change of local public transport: the Kaohsiung City Bus case," Applied Economics, Taylor & Francis Journals, vol. 37(12), pages 1399-1410.
- Colburn, Christopher B. & Talley, Wayne K., 1992. "A firm specific analysis of economies of size in the U.S. urban multiservice transit industry," Transportation Research Part B: Methodological, Elsevier, vol. 26(3), pages 195-206, June.
- Berechman, Joseph, 1987. "Cost structure and production technology in transit : An application to the Israeli bus transit sector," Regional Science and Urban Economics, Elsevier, vol. 17(4), pages 519-534, November.
- Giovanni Fraquelli & Massimiliano Piacenza & Davide Vannoni, 2004. "Scope and scale economies in multi-utilities: evidence from gas, water and electricity combinations," Applied Economics, Taylor & Francis Journals, vol. 36(18), pages 2045-2057. Full references (including those not matched with items on IDEAS)
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