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Intermodal and Intramodal Competition in Passenger Rail Transport


  • Ivaldi, Marc
  • Vibes, Catherine


The objective of the paper is to elaborate a simulation model to analyse inter and intra-modal competition in the transport industry, based on game theory models. In our setting, consumers choose a transport mode and an operator to travel on a given city-pair; operators strategically decide on prices for the types of service they provide. We derive the market equilibrium and simulate potential scenarios. In particular we measure the impact of entry by a low cost train operator and the effect of a kerosene tax. Hence our framework could serve as a tool to measure the effectiveness of competition on a relevant market or to design marketing strategies. More generally it can be applied in cases of oligopolistic competition when detailed data are not available.

Suggested Citation

  • Ivaldi, Marc & Vibes, Catherine, 2005. "Intermodal and Intramodal Competition in Passenger Rail Transport," CEPR Discussion Papers 5004, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:5004

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    References listed on IDEAS

    1. Tae H. Oum & Waters, W.G. & Jong Say Yong, 1990. "A survey of recent estimates of price elasticities of demand for transport," Policy Research Working Paper Series 359, The World Bank.
    2. Ivaldi, Marc & Verboven, Frank, 2005. "Quantifying the effects from horizontal mergers in European competition policy," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 669-691, December.
    3. Ivaldi, Marc & Pouyet, Jérôme & de Villemeur, Étienne, 2003. "Entry in the Passenger Rail Industry : A Theoretical Investigation," IDEI Working Papers 192, Institut d'Économie Industrielle (IDEI), Toulouse.
    4. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    5. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
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    Cited by:

    1. Chiambaretto, Paul & Decker, Christopher, 2012. "Air–rail intermodal agreements: Balancing the competition and environmental effects," Journal of Air Transport Management, Elsevier, vol. 23(C), pages 36-40.
    2. Martín, Juan Carlos & Román, Concepción & García-Palomares, Juan Carlos & Gutiérrez, Javier, 2014. "Spatial analysis of the competitiveness of the high-speed train and air transport: The role of access to terminals in the Madrid–Barcelona corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 392-408.
    3. Fay Dunkerley & Andre de Palma & Stef Proost, 2009. "Spatial Asymmetric Duopoly With An Application To Brussels' Airports," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 529-553.
    4. Dunkerley Fay & Andre de Palma & Proost Stef, 2005. "Asymmetric Duopoly in Space - what policies work?," Energy, Transport and Environment Working Papers Series ete0509, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    5. Marc Ivaldi, 2005. "Restructuring Railways: In Theory and Practice," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(4), pages 3-9, 01.
    6. X. Dhaultfoeuille & P. Fevrier & L. Wilner, 2012. "Demand Estimation in the Presence of Revenue Management," Documents de Travail de la DESE - Working Papers of the DESE g2012-13, Institut National de la Statistique et des Etudes Economiques, DESE.
    7. Bergantino, Angela S. & Capozza, Claudia & Capurso, Mauro, 2015. "The impact of open access on intra- and inter-modal rail competition. A national level analysis in Italy," Transport Policy, Elsevier, vol. 39(C), pages 77-86.
    8. Emile QUINET, 2006. "Transport cost benefit analysis in France: Recent changes, progress and shortcomings," Departmental Working Papers 2006-22, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Fröidh, Oskar & Byström, Camilla, 2013. "Competition on the tracks – Passengers’ response to deregulation of interregional rail services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 56(C), pages 1-10.
    10. Cruz Rodríguez Ignacio J., 2012. "Aerolíneas de bajo costo en México Competencia modal, intermodal e intramodal," Contaduría y Administración, Accounting and Management, vol. 57(4), pages 235-251, octubre-d.

    More about this item


    product differentiation; relevant transport market; simulation model;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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