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Intermodal Competition in The London-Paris Passenger Market: High-Speed Rail and Air Transport

Author

Listed:
  • Christiaan Behrens

    (VU University Amsterdam)

  • Eric Pels

    (VU University Amsterdam)

Abstract

This discussion paper has led to a publication in Journal of Urban Economics , 71(3), 278-88. This paper studies inter- and intramodal competition in the London-Paris passenger market. Using revealed preference data, we estimate nested and mixed multinomial logit models to examine passenger behaviour in the London-Paris market. We present a case study on the relocation of Eurostar services from Waterloo International to St Pancras International station. The results show that competition is present in this market. Demand is elastic, and passengers are heterogeneous in their valuation of fares and accessibility. Aviation and high-speed rail are homogenous in unobserved effects. The large market share of the Eurostar and the withdrawal of aviation alternatives indicate that competition will decline in the long-run.

Suggested Citation

  • Christiaan Behrens & Eric Pels, 2009. "Intermodal Competition in The London-Paris Passenger Market: High-Speed Rail and Air Transport," Tinbergen Institute Discussion Papers 09-051/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20090051
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    References listed on IDEAS

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    Cited by:

    1. Delaplace, Marie & Dobruszkes, Frédéric, 2015. "From low-cost airlines to low-cost high-speed rail? The French case," Transport Policy, Elsevier, vol. 38(C), pages 73-85.
    2. Ofelia Betancor & Juan Luis Jiménez, 2011. "When trains go faster than planes: the strategic reaction of airlines in Spain," ERSA conference papers ersa11p295, European Regional Science Association.
    3. Gundelfinger-Casar, Javier & Coto-Millán, Pablo, 2017. "Intermodal competition between high-speed rail and air transport in Spain," Utilities Policy, Elsevier, vol. 47(C), pages 12-17.

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    More about this item

    Keywords

    inter- and intramodal competition; nested logit; mixed logit; aviation; rail;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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