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Should I Go by Bus? The Liberalization of the Long-Distance Bus Industry in France

Author

Listed:
  • Thierry Blayac

    (Université de Montpellier
    LAMETA)

  • Patrice Bougette

    (Université Côte d'Azur
    GREDEG CNRS)

Abstract

The opening up of the French long-distance bus industry is one of the outcomes of the Loi Macron. In this study, we build a unique data set of several representative bus routes and show that the effects of the liberalization have been encouraging in terms of fares, new entry, higher frequency, and higher quality. First, with regard to international routes that used to be under cabotage, we find that relaxing quantitative restrictions has led to the expected results on the Lyon-Torino and Paris-London routes. Second, with regard to domestic routes newly created from the Loi Macron, mostly all procompetitive expected variations in the variables have been observed, except for fares. Indeed, we show that bus operators used an initial aggressive pricing strategy to induce demand for the new services and then increased fares once customers became accustomed with the service.

Suggested Citation

  • Thierry Blayac & Patrice Bougette, 2017. "Should I Go by Bus? The Liberalization of the Long-Distance Bus Industry in France," GREDEG Working Papers 2017-09, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  • Handle: RePEc:gre:wpaper:2017-09
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    File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2017-09.pdf
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    References listed on IDEAS

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    1. repec:eee:retrec:v:72:y:2018:i:c:p:92-105 is not listed on IDEAS
    2. repec:eee:retrec:v:72:y:2018:i:c:p:82-91 is not listed on IDEAS
    3. Dürr, Niklas S. & Hüschelrath, Kai, 2017. "Patterns of entry and exit in the deregulated German interurban bus industry," Transport Policy, Elsevier, vol. 59(C), pages 196-208.
    4. repec:eee:transa:v:111:y:2018:i:c:p:266-276 is not listed on IDEAS
    5. repec:eee:retrec:v:69:y:2018:i:c:p:260-269 is not listed on IDEAS

    More about this item

    Keywords

    Transportation services; deregulation; bus industry; Loi Macron; intermodal competition; France;

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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