Diversification strategies and scope economies: evidence from a sample of Italian regional bus transport providers

Elisabetta Ottoz and Marina Di Giacomo

Applied Economics, 2012, vol. 44, issue 22, 2867-2880

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 and assess the presence and the magnitude of scope economies. We split the whole sample of firms according to their diversification strategy: private firms, mainly diversifying in competitive transport related services and public firms providing nontransport services in regulated markets. Scope economies appear sizeable for both groups but higher for firms pursuing a transport related strategy, suggesting caution in the multiutility development pursued by public LPT firms in Italy.

Date: 2012
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Related works:
Working Paper: Diversification strategies and scope economies: Evidence from a sample of Italian regional bus transport providers (2011)
Working Paper: Diversification strategies and scope economies: Evidence from a sample of Italian regional bus transport Pproviders (2008)
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DOI: 10.1080/00036846.2011.568399

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