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

Elisabetta Ottoz and Marina Di Giacomo

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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 non-transport services in regulated markets. Scope economies appear sizeable for both groups but higher for firms pursuing a transport related strategy, suggesting caution in the multi-utility development pursued by public LPT firms in Italy.

Keywords: Social; Sciences; &; Humanities (search for similar items in EconPapers)
Date: 2011-06-25
Note: View the original document on HAL open archive server: https://hal.science/hal-00711444
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Published in Applied Economics, 2011, pp.1. ⟨10.1080/00036846.2011.568399⟩

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Related works:
Journal Article: Diversification strategies and scope economies: evidence from a sample of Italian regional bus transport providers (2012)
Working Paper: Diversification strategies and scope economies: Evidence from a sample of Italian regional bus transport Pproviders (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00711444

DOI: 10.1080/00036846.2011.568399

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