Intermodal and Intramodal Competition in Passenger Rail Transport

27 Pages Posted: 22 Aug 2005

See all articles by Marc Ivaldi

Marc Ivaldi

Toulouse School of Economics; Centre for Economic Policy Research (CEPR)

Catherine Vibes

University of Toulouse 1 - Centre Interuniversitaire de Calcul de Toulouse (CICT)

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Date Written: April 2005

Abstract

The objective of the paper is to elaborate a simulation model to analyze inter and intramodal competition in the transport industry, based on game theory models. In our setting, consumers choose a transport mode and an operator to travel on a given city-pair; operators strategically decide on prices for the types of service they provide. We derive the market equilibrium and simulate potential scenarios. In particular, we measure the impact of entry by a low cost train operator and the effect of a kerosene tax. Hence, our framework could serve as a tool to measure the effectiveness of competition on a relevant market or to design marketing strategies. More generally, it can be applied in cases of oligopolistic competition when detailed data are not available.

Keywords: Product differentiation, relevant transport market, simulation model

JEL Classification: C35, C81, L11, L13, L92, L93, L98

Suggested Citation

Ivaldi, Marc and Vibes, Catherine, Intermodal and Intramodal Competition in Passenger Rail Transport (April 2005). CEPR Discussion Paper No. 5004, Available at SSRN: https://ssrn.com/abstract=772685

Marc Ivaldi (Contact Author)

Toulouse School of Economics ( email )

Manufacture des Tabacs
21 Allee de Brienne bat. F
Toulouse Cedex, F-31000
France
+33 5 61 12 8592 (Phone)
+33 5 61 12 8637 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Catherine Vibes

University of Toulouse 1 - Centre Interuniversitaire de Calcul de Toulouse (CICT) ( email )

118, route de Narbonne
Toulouse Cedex 4, F-31062
France

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