IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01794958.html
   My bibliography  Save this paper

Are users better-off with new transit lines?

Author

Listed:
  • Moez Kilani

    () (EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Droit et Santé - PRES Université Lille Nord de France - Université de Lille, Sciences Humaines et Sociales - Université de Lille, Sciences et Technologies, LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • André de Palma

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Stef Proost

    (Center for Economic Studies - CES - KU Leuven - CES - KU Leuven)

Abstract

This paper studies the entry of new competitors in public transport like long distance busses that compete with rail. A stylized model is used that analyzes the addition of a new more direct line in an existing network. We show that the introduction of the new line is only beneficial if there are relatively many users that want to use the new direct line. Our result raises serious concerns with respect to the decentralized management of transit systems.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Moez Kilani & André de Palma & Stef Proost, 2017. "Are users better-off with new transit lines?," Post-Print hal-01794958, HAL.
  • Handle: RePEc:hal:journl:hal-01794958
    DOI: 10.1016/j.tra.2017.05.029
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01794958
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), 2011. "A Handbook of Transport Economics," Books, Edward Elgar Publishing, number 12679.
    2. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
    3. Didier van de Velde, 2009. "Long-Distance Bus Services in Europe: Concessions or Free Market?," OECD/ITF Joint Transport Research Centre Discussion Papers 2009/21, OECD Publishing.
    4. Gabriel M Ahlfeldt & Arne Feddersen, 2018. "From periphery to core: measuring agglomeration effects using high-speed rail," Journal of Economic Geography, Oxford University Press, vol. 18(2), pages 355-390.
    5. Aarhaug, Jørgen & Fearnley, Nils, 2016. "Deregulation of the Norwegian long distance express coach market," Transport Policy, Elsevier, vol. 46(C), pages 1-6.
    6. Marc Ivaldi & Catherine Vibes, 2008. "Price Competition in the Intercity Passenger Transport Market: A Simulation Model," Journal of Transport Economics and Policy, University of Bath, vol. 42(2), pages 225-254, May.
    7. Baker, Stuart & White, Peter, 2010. "Impacts of free concessionary travel: Case study of an English rural region," Transport Policy, Elsevier, vol. 17(1), pages 20-26, January.
    8. Monchambert, Guillaume & de Palma, André, 2014. "Public transport reliability and commuter strategy," Journal of Urban Economics, Elsevier, vol. 81(C), pages 14-29.
    9. Hamdouch, Younes & Ho, H.W. & Sumalee, Agachai & Wang, Guodong, 2011. "Schedule-based transit assignment model with vehicle capacity and seat availability," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1805-1830.
    10. André de Palma & Robin Lindsey & Emile Quinet & Robert Vickerman, 2011. "Handbook Of Transport Economics," PSE-Ecole d'économie de Paris (Postprint) halshs-00754912, HAL.
    11. Winston, Clifford & Maheshri, Vikram, 2007. "On the social desirability of urban rail transit systems," Journal of Urban Economics, Elsevier, vol. 62(2), pages 362-382, September.
    12. Savage, Ian, 1993. "Deregulation and Privatization of Britain's Local Bus Industry," Journal of Regulatory Economics, Springer, vol. 5(2), pages 143-158, June.
    13. Jiang, Changmin & Zhang, Anming, 2016. "Airline network choice and market coverage under high-speed rail competition," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 248-260.
    14. Richard Steinberg & Willard I. Zangwill, 1983. "The Prevalence of Braess' Paradox," Transportation Science, INFORMS, vol. 17(3), pages 301-318, August.
    15. Bar-Yosef, Asaf & Martens, Karel & Benenson, Itzhak, 2013. "A model of the vicious cycle of a bus line," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 37-50.
    16. Augustin, Katrin & Gerike, Regine & Martinez Sanchez, Manuel Josue & Ayala, Carolina, 2014. "Analysis of intercity bus markets on long distances in an established and a young market: The example of the U.S. and Germany," Research in Transportation Economics, Elsevier, vol. 48(C), pages 245-254.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zulqarnain H. Khattak & Mark J. Magalotti & John S. Miller & Michael D. Fontaine, 2017. "Using New Mode Choice Model Nesting Structures to Address Emerging Policy Questions: A Case Study of the Pittsburgh Central Business District," Sustainability, MDPI, Open Access Journal, vol. 9(11), pages 1-16, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Samuel de Haas & Daniel Herold & Jan Thomas Schaefer, 2017. "Entry deterrence due to brand proliferation: Empirical evidence from the German interurban bus industry," MAGKS Papers on Economics 201731, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Fageda, Xavier & Sansano, Sergi, 2018. "Factors influencing prices and frequencies in the interurban bus market: Evidence from Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 266-276.
    3. Aarhaug, Jørgen & Farstad, Eivind & Fearnley, Nils & Halse, Askill Harkjerr, 2018. "Express coaches: An up-hill battle after liberalization?," Research in Transportation Economics, Elsevier, vol. 72(C), pages 82-91.
    4. Rojo, Marta & dell’Olio, Luigi & Gonzalo-Orden, Hernán & Ibeas, Ángel, 2015. "Inclusion of quality criteria in public bus service contracts in metropolitan areas," Transport Policy, Elsevier, vol. 42(C), pages 52-63.
    5. Palma, André de & Lindsey, Robin & Picard, Nathalie, 2015. "Trip-timing decisions and congestion with household scheduling preferences," Economics of Transportation, Elsevier, vol. 4(1), pages 118-131.
    6. Huang, Jie & Levinson, David M., 2015. "Circuity in urban transit networks," Journal of Transport Geography, Elsevier, vol. 48(C), pages 145-153.
    7. Börjesson, Maria & Fung, Chau Man & Proost, Stef & Yan, Zifei, 2018. "Do buses hinder cyclists or is it the other way around? Optimal bus fares, bus stops and cycling tolls," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 326-346.
    8. Diana N. Elshahawany & Eduardo A. Haddd, Michael L. Lahr, 2015. "The Potential Economic Impacts of the Proposed Development Corridor in Egypt: An Interregional CGE Approach," Working Papers, Department of Economics 2015_42, University of São Paulo (FEA-USP).
    9. Ian W. H. Parry & Kenneth A. Small, 2009. "Should Urban Transit Subsidies Be Reduced?," American Economic Review, American Economic Association, vol. 99(3), pages 700-724, June.
    10. D’Alfonso, Tiziana & Jiang, Changmin & Bracaglia, Valentina, 2016. "Air transport and high-speed rail competition: Environmental implications and mitigation strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 261-276.
    11. Lindsey, Robin & de Palma, André & Silva, Hugo E., 2019. "Equilibrium in a dynamic model of congestion with large and small users," Transportation Research Part B: Methodological, Elsevier, vol. 124(C), pages 82-107.
    12. Jota Ishikawa & Nori Tarui, 2015. "Backfiring with backhaul problems: Trade and Industrial Policies with Endogenous Transport Costs," Working Papers 201514, University of Hawaii at Manoa, Department of Economics.
    13. Jiang, Changmin & D'Alfonso, Tiziana & Wan, Yulai, 2017. "Air-rail cooperation: Partnership level, market structure and welfare implications," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 461-482.
    14. Börjesson, Maria & Fung, Chau Man & Proost, Stef & Yan, Zifei, 2017. "Cycling tolls and optimal number of bus stops: the importance of congestion and crowding," Working papers in Transport Economics 2017:10, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    15. de Palma, André & Kilani, Moez & Proost, Stef, 2015. "Discomfort in mass transit and its implication for scheduling and pricing," Transportation Research Part B: Methodological, Elsevier, vol. 71(C), pages 1-18.
    16. Zhang, Fangni & Yang, Hai & Liu, Wei, 2014. "The Downs–Thomson Paradox with responsive transit service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 244-263.
    17. repec:hal:wpaper:hal-00827972 is not listed on IDEAS
    18. Marion Drut, 2016. "Spatial issues revisited: A note on the role of shared transportation modes," ERSA conference papers ersa16p118, European Regional Science Association.
    19. Jungho Lee & Shang-Jin Wei & Jianhuan Xu, 2020. "The Welfare Cost of a Current Account Imbalance: A "Clean" Effect," NBER Working Papers 27276, National Bureau of Economic Research, Inc.
    20. 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).
    21. Deepti Goel & Sonam Gupta, 2017. "The Effect of Metro Expansions on Air Pollution in Delhi," World Bank Economic Review, World Bank Group, vol. 31(1), pages 271-294.

    More about this item

    JEL classification:

    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01794958. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.