Scheduled service versus personal transportation: the role of distance
Xavier Fageda and
No 2009-10, Working Papers from FEDEA
This paper presents a theoretical and empirical analysis of the relationship between frequency of scheduled transportation services and their substitutability with personal transportation (using distance as a proxy). We study the interaction between a monopoly firm providing a high speed Scheduled service and private transportation (i.e., car). Interestingly, the carrier chooses to increase the frequency of service on longer routes when competing with personal transportation because by providing higher frequency (at extra cost) it can also charge higher fares which can boost its profits. However, in line with the results of earlier studies, frequency decreases for longer flights when driving is not a viable option. An empirical application of our analysis to the European airline industry confirms the predictions of our theoretical model.
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
Journal Article: Scheduled service versus personal transportation: The role of distance (2010)
Working Paper: Scheduled Service Versus Personal Transportation: The Role of Distance (2009)
Working Paper: Scheduled service versus personal transportation: the role of distance (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fda:fdaddt:2009-10
Access Statistics for this paper
More papers in Working Papers from FEDEA
Bibliographic data for series maintained by Carmen Arias ().