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Exploring the Effects of Competition for Railway Markets

  • Rafael Lalive


    (HEC Lausanne, University of Lausanne)

  • Armin Schmutzler


    (Socioeconomic Institute, University of Zurich)

This paper studies the effects of introducing competition for local passenger railway markets in the German state of Baden-Württemberg. We compare the evolution of the frequency of service on lines that were exposed to competition for the market and lines that were not. Our results suggest that competitive lines enjoyed a stronger growth of the frequency of service than non-competitive lines, even after controlling for various line characteristics that might have an independent influence on the frequency of service. Our results further suggest that the effects of competition may depend strongly on the operator and on characteristics of the line.

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Paper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 0511.

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Length: 26 pages
Date of creation: Sep 2005
Date of revision: Apr 2007
Publication status: published in International Journal of Industrial Organisation, 26, pp. 443-458, 2008
Handle: RePEc:soz:wpaper:0511
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  1. Boitani, Andrea & Cambini, Carlo, 2006. "“To Bid or Not to Bid, This is the Question: The Italian Experience in Competitive Tendering for Local Bus Services”," MPRA Paper 2253, University Library of Munich, Germany.
  2. Dennis Gaertner & Armin Schmutzler, 2006. "Merger Negotiations and Ex-Post Regret," SOI - Working Papers 0607, Socioeconomic Institute - University of Zurich, revised Dec 2007.
  3. Yves Schneider & Peter Zweifel, 2005. "Spatial Effects in Willingness-to-Pay: The Case of Two Nuclear Risks," SOI - Working Papers 0502, Socioeconomic Institute - University of Zurich, revised Sep 2007.
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  6. Hans Gersbach & Armin Schmutzler, 2007. "Does Globalization Create Superstars?," SOI - Working Papers 0706, Socioeconomic Institute - University of Zurich.
  7. Gersbach, Hans & Schmutzler, Armin, 2006. "Foreign Direct Investment and R&D Offshoring," CEPR Discussion Papers 5766, C.E.P.R. Discussion Papers.
  8. Stefan Buehler & Armin Schmutzler & Men-Andri Benz, 2002. "Infrastructure Quality in Deregulated Industries: Is there an Underinvestment Problem?," SOI - Working Papers 0209, Socioeconomic Institute - University of Zurich.
  9. Hans Gersbach & Armin Schmutzler, 2006. "A Product-Market Theory of Industry-Specific Training," SOI - Working Papers 0610, Socioeconomic Institute - University of Zurich.
  10. Stefan Boes & Markus Lipp & Rainer Winkelmann, 2005. "Money Illusion Under Test," SOI - Working Papers 0514, Socioeconomic Institute - University of Zurich.
  11. Yeon-Koo Che, 1993. "Design Competition through Multidimensional Auctions," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 668-680, Winter.
  12. Adrian Bruhin & Helga Fehr-Duda & Thomas Epper, 2010. "Risk and Rationality: Uncovering Heterogeneity in Probability Distortion," Econometrica, Econometric Society, vol. 78(4), pages 1375-1412, 07.
  13. Pittman Russell, 2005. "Structural Separation to Create Competition? The Case of Freight Railways," Review of Network Economics, De Gruyter, vol. 4(3), pages 1-16, September.
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  15. Randall S. Kroszner & Philip E. Strahan, 1999. "What Drives Deregulation? Economics And Politics Of The Relaxation Of Bank Branching Restrictions," The Quarterly Journal of Economics, MIT Press, vol. 114(4), pages 1437-1467, November.
  16. Michael G. Pollitt & Andrew S. J. Smith, 2002. "The restructuring and privatisation of British Rail: was it really that bad?," Fiscal Studies, Institute for Fiscal Studies, vol. 23(4), pages 463-502, December.
  17. Lalive Rafael & Schmutzler Armin, 2008. "Entry in Liberalized Railway Markets: The German Experience," Review of Network Economics, De Gruyter, vol. 7(1), pages 1-16, March.
  18. Gärtner, Dennis L. & Halbheer, Daniel, 2009. "Are there waves in merger activity after all?," International Journal of Industrial Organization, Elsevier, vol. 27(6), pages 708-718, November.
  19. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, June.
  20. Littlechild Stephen, 2002. "Competitive Bidding for a Long-Term Electricity Distribution Contract," Review of Network Economics, De Gruyter, vol. 1(1), pages 1-38, March.
  21. Sandra Hanslin & Rainer Winkelmann, 2006. "The Apple Falls Increasingly Far: Parent-Child Correlation in Schooling and the Growth of Post-Secondary Education in Switzerland," SOI - Working Papers 0603, Socioeconomic Institute - University of Zurich.
  22. Dario Sacco & Armin Schmutzler, 2008. "Competition and Innovation: An Experimental Investigation," SOI - Working Papers 0807, Socioeconomic Institute - University of Zurich.
  23. Duso, Tomaso & Roller, Lars-Hendrik, 2003. "Endogenous deregulation: evidence from OECD countries," Economics Letters, Elsevier, vol. 81(1), pages 67-71, October.
  24. Thomas Borek & Stefan Buehler & Armin Schmutzler, 2004. "Mergers under Asymmetric Information – Is there a Lemons Problem?," SOI - Working Papers 0408, Socioeconomic Institute - University of Zurich.
  25. Stefan Boes & Rainer Winkelmann, 2006. "The Effect of Income on Positive and Negative Subjective Well-Being," SOI - Working Papers 0605, Socioeconomic Institute - University of Zurich.
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