Making Hay While the Sun Shines

Stefan Szymanski

Journal of Industrial Economics, 1996, vol. 44, issue 1, 1-16

Abstract: This paper analyzes the pricing behavior of cross channel ferry companies in the eight-year period between awarding the Channel Tunnel franchise and the completion of the construction of the tunnel. The ferry companies appear to have 'made hay' by significantly increasing some published prices for car ferry journeys in real terms over the period. The paper presents a model of regulatory intervention that can account for increasing prices. Copyright 1996 by Blackwell Publishing Ltd.

Date: 1996
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