Competition in long distance transport: Impacts on prices, frequencies, and demand in the Czech Republic

This article analyses the effect of different entry regulations on company conduct and traveller behaviour. The paper presents a comprehensive case study of three railway markets with significantly different entry policies using data on prices and frequencies together with a survey conducted to obta...

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Bibliographic Details
Published in:Research in transportation business & management 2021-12, Vol.41, p.100655, Article 100655
Main Authors: Fitzová, Hana, Kališ, Richard, Pařil, Vilém, Kasa, Marek
Format: Article
Language:English
Subjects:
Competition
Elasticity
Frequency
Open access
Passenger transport
Price strategy
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Summary:This article analyses the effect of different entry regulations on company conduct and traveller behaviour. The paper presents a comprehensive case study of three railway markets with significantly different entry policies using data on prices and frequencies together with a survey conducted to obtain revealed preferences. The study employs data from the three main lines in the Czech Republic. The two open access markets tended to provide significantly higher connection frequencies than the line with regulated entry did. Surprisingly, low price variation across the rail and bus markets suggests low monopoly power for the monopolised incumbent and its uniform price strategy across markets with different entry regulations. On the other hand, high price sensitivity among travellers confirms the importance of intramodal competition. [Display omitted] •No significant price differences across markets with varying entry regulations.•Price doesn't significantly differ across markets with varying entry regulations.•Competition had a positive effect on connection frequency.•However, connection frequency remained lower on the monopolised PSO market.•Intermodal competition increased consumers' price sensitivity.
ISSN:2210-5395
2210-5409
DOI:10.1016/j.rtbm.2021.100655