Intermodal and Intramodal Competition in Passenger Rail Transport

Marc Ivaldi and Catherine Vibes

No 5004, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The objective of the paper is to elaborate a simulation model to analyse inter and intra-modal competition in the transport industry, based on game theory models. In our setting, consumers choose a transport mode and an operator to travel on a given city-pair; operators strategically decide on prices for the types of service they provide. We derive the market equilibrium and simulate potential scenarios. In particular we measure the impact of entry by a low cost train operator and the effect of a kerosene tax. Hence our framework could serve as a tool to measure the effectiveness of competition on a relevant market or to design marketing strategies. More generally it can be applied in cases of oligopolistic competition when detailed data are not available.

Keywords: Product differentiation; Relevant transport market; Simulation model (search for similar items in EconPapers)
JEL-codes: C35 C81 L11 L13 L92 L93 L98 (search for similar items in EconPapers)
Date: 2005-04
New Economics Papers: this item is included in nep-cmp, nep-com and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Working Paper: Intermodal and Intramodal Competition in Passenger Rail Transport (2005)
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