Competition for Railway Markets: The Case of Baden-WüRttemberg

29 Pages Posted: 1 Mar 2006

See all articles by Armin Schmutzler

Armin Schmutzler

University of Zurich - Department of Economics; Centre for Economic Policy Research (CEPR)

Rafael Lalive

University of Lausanne - Department of Economics (DEEP); IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: December 2005

Abstract

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 the competitively procured lines enjoyed a stronger growth of the frequency of service than those that were not procured competitively, 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.

Keywords: Competition for the market, liberalization, passenger railways, procurement auctions

JEL Classification: D43, D44, R48

Suggested Citation

Schmutzler, Armin and Lalive, Rafael, Competition for Railway Markets: The Case of Baden-WüRttemberg (December 2005). CEPR Discussion Paper No. 5396, Available at SSRN: https://ssrn.com/abstract=887565

Armin Schmutzler (Contact Author)

University of Zurich - Department of Economics ( email )

Zürich, CH-8006
Switzerland

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Rafael Lalive

University of Lausanne - Department of Economics (DEEP) ( email )

BFSH1
Lausanne, 1015
Switzerland

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

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