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The impact of open access on intra- and inter-modal rail competition. A national level analysis in Italy

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  • Bergantino, Angela Stefania
  • Capozza, Claudia
  • Capurso, Mauro

Abstract

During 2012 the Italian passenger market has experienced the entry of a new operator, Nuovo Trasporto Viaggiatori (NTV) on the high speed rail (HSR) market segment, in competition with the incumbent Trenitalia. The Italian market is the first and most extensive case in Europe where two railway companies compete for HSR services on open access basis. In this paper we empirically explore the competitive effects of the newcomer’s entry in the passenger market tackling two issues. First, we study price and capacity effects of the stemming intra-modal competition. Second, we measure the impact of inter-modal competition by HSR on airline pricing behaviour. The results show that the two railway companies engage in strategic pricing, although to a different degree on different routes and that capacity and frequency are strategic variables. We also find that airlines significantly reduce fares when flights are in direct competition with HSR services.
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Suggested Citation

  • Bergantino, Angela Stefania & Capozza, Claudia & Capurso, Mauro, 2015. "The impact of open access on intra- and inter-modal rail competition. A national level analysis in Italy," Working Papers 15_2, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    • Handle: RePEc:sit:wpaper:15_2
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    References listed on IDEAS

    as
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    Cited by:

    1. repec:eee:trapol:v:78:y:2019:i:c:p:8-18 is not listed on IDEAS
    2. Dominique Bouf & Christian Desmaris, 2015. "High speed trains and spatial equity in France
      [Trains à grande vitesse et équité spatiale en France]      ," Working Papers halshs-01194897, HAL.
    3. Christian Desmaris, 2016. "High Speed Rail Competition in Italy: A Major Railway Reform with a “Win-Win Game”?," International Transport Forum Discussion Papers 2016/11, OECD Publishing.
    4. repec:taf:applec:v:50:y:2018:i:46:p:4937-4953 is not listed on IDEAS
    5. Vigren, Andreas, 2016. "Competition in Swedish passenger railway : entry in an open-access market," Working papers in Transport Economics 2016:18, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    6. Angela S. Bergantino & Claudia Capozza & Mauro Capurso, 2018. "Pricing strategies: who leads and who follows in the air and rail passenger markets in Italy," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4937-4953, October.
    7. repec:gam:jsusta:v:11:y:2019:i:14:p:3933-:d:249773 is not listed on IDEAS
    8. Tomeš, Zdeněk & Kvizda, Martin & Jandová, Monika & Rederer, Václav, 2016. "Open access passenger rail competition in the Czech Republic," Transport Policy, Elsevier, vol. 47(C), pages 203-211.
    9. repec:eee:transa:v:100:y:2017:i:c:p:105-120 is not listed on IDEAS
    10. Álvarez-SanJaime, Óscar & Cantos-Sanchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, Jose J., 2016. "Rail access charges and internal competition in high speed trains," Transport Policy, Elsevier, vol. 49(C), pages 184-195.
    11. Xia, Wenyi & Zhang, Anming, 2016. "High-speed rail and air transport competition and cooperation: A vertical differentiation approach," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 456-481.
    12. repec:eee:retrec:v:69:y:2018:i:c:p:300-309 is not listed on IDEAS
    13. repec:eee:retrec:v:72:y:2018:i:c:p:37-48 is not listed on IDEAS
    14. Beria, Paolo & Grimaldi, Raffaele, 2016. "An ex-post cost benefit analysis of Italian High Speed," Working Papers 16_3, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    15. repec:eee:retrec:v:72:y:2018:i:c:p:49-64 is not listed on IDEAS
    16. Cherbonnier, Frédéric & Ivaldi, Marc & Muller-Vibes, Catherine & Van Der Straeten, Karine, 2018. "Competition For Versus In the Market of Long-Distance Passenger Rail Services," TSE Working Papers 18-901, Toulouse School of Economics (TSE), revised Apr 2018.
    17. Bergantino, Angela Stefania & Capozza, Claudia, 2015. "One price for all? Price discrimination and market captivity: Evidence from the Italian city-pair markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 231-244.
    18. Desmaris, Christian & Croccolo, Fabio, 2018. "The HSR competition in Italy: How are the regulatory design and practices concerned?," Research in Transportation Economics, Elsevier, vol. 69(C), pages 290-299.
    19. repec:eee:transa:v:120:y:2019:i:c:p:261-276 is not listed on IDEAS
    20. repec:eee:retrec:v:72:y:2018:i:c:p:74-81 is not listed on IDEAS
    21. repec:eee:ecotra:v:11-12:y:2017:i::p:49-59 is not listed on IDEAS
    22. repec:eee:jotrge:v:46:y:2015:i:c:p:189-200 is not listed on IDEAS
    23. repec:eee:trapol:v:68:y:2018:i:c:p:63-79 is not listed on IDEAS
    24. Daniel Albalate & Mattia Borsati, 2019. "“On the modal shift from motorway to high-speed rail: evidence from Italy”," IREA Working Papers 201910, University of Barcelona, Research Institute of Applied Economics, revised Jun 2019.
    25. Capozza, Claudia, 2016. "The effect of rail travel time on airline fares: First evidence from the Italian passenger market," Economics of Transportation, Elsevier, vol. 6(C), pages 18-24.

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