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Economies of scale and scope in local public transportation

Mehdi Farsi, Aurelio Fetz () and Massimo Filippini
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Aurelio Fetz: Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland

No 06-48, CEPE Working paper series from CEPE Center for Energy Policy and Economics, ETH Zurich

Abstract: The purpose of this study is to analyze the cost structure of a sample of Swiss multi-modal urban transport operators in order to assess economies of scale and scope. The results suggest that the industry is characterized by increasing returns to scale and economies of scope. Several European countries have introduced a competitive tendering procedure in the assignment of franchised monopoly in the local transport industry. In the case of multi-modal systems the regulator has to decide to open the competitive tendering procedure for supplying the entire transport services or to unbundle the multi-modal systems and open separate tenders for different modes of transport. In order to make the decision the regulator should have information on the economies of scope. Only few studies have addressed the issue of scope economies in local transport systems.

Pages: 16 pages
Date: 2006-04
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Economies of Scale and Scope in Local Public Transportation (2007) Downloads
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