Diversification strategies and scope economies: Evidence from a sample of Italian regional bus transport Pproviders

Elisabetta Ottoz and Marina Di Giacomo

Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin

Abstract: A growing number of local public transport (LPT) companies diversify their production lines by providing a large set of services. We investigate the cost structure of a sample of LPT companies operating in Italy in order to assess the presence and the magnitude of scope economies. We split thewhole sample of firms according to the diversification strategy: private firms, mainly diversifying in competitive transport-related services and public firms providing non-transport services in regulated markets. Regardless of the functional form and the method used, scope economies appear sizeable for both groups but higher for firms pursuing a transport related strategy, suggesting it should be preferable to the multi-utility development pursued by public LPT firms.

Pages: 33 pages
Date: 2008-02
New Economics Papers: this item is included in nep-com and nep-cse
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Related works:
Journal Article: Diversification strategies and scope economies: evidence from a sample of Italian regional bus transport providers (2012)
Working Paper: Diversification strategies and scope economies: Evidence from a sample of Italian regional bus transport providers (2011)
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