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Diversification strategies and scope economies: Evidence from a sample of Italian regional bus transport providers

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  • Elisabetta Ottoz

    (Dipartimento di Economia Cognetti - UNITO - Università degli studi di Torino = University of Turin)

  • Marina Di Giacomo

    (Scienze Economiche G. Prato - UNITO - Università degli studi di Torino = University of Turin)

Abstract

A growing number of local public transport (LPT) companies diversify their production lines by providing a large set of services. We investigate the cost structure of a sample of LPT companies operating in Italy and assess the presence and the magnitude of scope economies. We split the whole sample of firms according to their diversification strategy: private firms, mainly diversifying in competitive transport-related services and public firms providing non-transport services in regulated markets. Scope economies appear sizeable for both groups but higher for firms pursuing a transport related strategy, suggesting caution in the multi-utility development pursued by public LPT firms in Italy.

Suggested Citation

  • Elisabetta Ottoz & Marina Di Giacomo, 2011. "Diversification strategies and scope economies: Evidence from a sample of Italian regional bus transport providers," Post-Print hal-00711444, HAL.
    • Handle: RePEc:hal:journl:hal-00711444
    DOI: 10.1080/00036846.2011.568399
    Note: View the original document on HAL open archive server: https://hal.science/hal-00711444
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    4. Bottasso, Anna & Conti, Maurizio & Vannoni, Davide, 2019. "Scale and (quasi) scope economies in airport technology. An application to UK airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 125(C), pages 150-164.
    5. Abrate, Graziano & Erbetta, Fabrizio & Fraquelli, Giovanni & Vannoni, Davide, 2016. "Bet big on doubles, bet smaller on triples. Exploring scope economies in multi-service passenger transport companies," Transport Policy, Elsevier, vol. 52(C), pages 81-88.
    6. Fumitoshi Mizutani & Eri Nakamura, 2016. "Factors Affecting Inefficiency Level: Stochastic Frontier Analysis of Public Utility Firms in Japan," Discussion Papers 2016-02, Kobe University, Graduate School of Business Administration.
    7. Fumitoshi Mizutani & Eri Nakamura, 2017. "How do governance factors affect inefficiency? Stochastic frontier analysis of public utility firms in Japan," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(3), pages 267-289, September.
    8. Daraio, Cinzia & Diana, Marco & Di Costa, Flavia & Leporelli, Claudio & Matteucci, Giorgio & Nastasi, Alberto, 2016. "Efficiency and effectiveness in the urban public transport sector: A critical review with directions for future research," European Journal of Operational Research, Elsevier, vol. 248(1), pages 1-20.
    9. Avenali, Alessandro & Boitani, Andrea & Catalano, Giuseppe & D’Alfonso, Tiziana & Matteucci, Giorgio, 2018. "Assessing standard costs in local public bus transport: A hybrid cost model," Transport Policy, Elsevier, vol. 62(C), pages 48-57.
    10. Fumitoshi Mizutani & Eri Nakamura, 2013. "Regulation, Competition, Diversification, Governance and Costs: An Empirical Analysis of Public Utility and Manufacturing Firms in Japan," Discussion Papers 2013-25, Kobe University, Graduate School of Business Administration.
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