The Use of a Consumer Survey to Determine the Relevant Market – Case Study for public transport between Prague and Most

Kleinová Eliška ()
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Kleinová Eliška: Department of Economics, Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic.

Review of Economic Perspectives, 2016, vol. 16, issue 1, 17-28

Abstract: The aim of this paper is to define a relevant market in the passenger transportation industry for the route between Prague and Most. A rising number of bus companies operating on this particular market suggests competition pressures. On the basis of European Commission legislation and its common practice we apply a demand-side substitution analysis in the form of the so called SSNIP test. Data for the empirical analysis were collected by means of a customer survey, which captured reactions to a 10% increase in the price of purchased tickets. The survey outcomes were then used to calculate an own price elasticity of demand and to carry out a critical loss analysis in order to define the relevant market.

Keywords: Transport Economics; SSNIP test; Critical loss analysis; Consumer survey (search for similar items in EconPapers)
JEL-codes: R40 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:reoecp:v:16:y:2016:i:1:p:17-28:n:2

DOI: 10.1515/revecp-2016-0002

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