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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

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