An Analysis of Intermodal Competition and Multiproduct Incumbent’s Strategies in the French Market: What Drive High-Speed Trains’ Prices and Frequencies?

Thierry Blayac, Patrice Bougette () and Florent Laroche ()
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Patrice Bougette: UniCA - Université Côte d'Azur, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur
Florent Laroche: UL2 - Université Lumière - Lyon 2, LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper presents an empirical analysis that examines the factors influencing service prices and frequencies of conventional high-speed trains (HSTs) in France. The study utilizes original data spanning from September 2019 to March 2020, focusing on the level of intermodal competition and the diversification strategy employed by the primary rail operator. The primary findings of the econometric analysis reveal that the determinants of the price per kilometer for both first and second-class conventional HST services exhibit some shared factors, particularly in relation to the technical characteristics of the routes and alternative options available. However, certain factors are specific to each category, such as the competitive environment, economic conditions, and demographic factors. The frequency of HST services is primarily influenced by travel time. In cases where conventional HSTs do not offer satisfactory service quality in terms of frequency and/or price, there is an auxiliary alternative option available to compensate for the limited frequency of conventional HST services.

Keywords: High-speed trains; Intermodal competition; Multiproduct firms’ strategies; Low-cost transportation; France (search for similar items in EconPapers)
Date: 2024-07
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Published in Transport Policy, 2024, 156, pp.25-42. ⟨10.1016/j.tranpol.2024.07.016⟩

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Journal Article: An analysis of intermodal competition and multiproduct Incumbent's strategies in the French market: What drive high-speed trains' prices and frequencies? (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-04653778

DOI: 10.1016/j.tranpol.2024.07.016

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