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Equal split in the informal market for group train travel

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  • Waichman, Israel
  • Requate, Till
  • Korzhenevych, Artem

Abstract

In this paper, we make use of a unique dataset collected at the central train station of the city of Kiel, Germany. Group tickets are used by individual proposers looking for co-travelers to share the ride with shortly before the train departure. The shared ride is offered for a fixed price. We observe that the prevailing price offer corresponds to an equal split of the ticket cost between the maximum possible number of co-travelers. This result is remarkable, because the positions of the bargaining parties are clearly asymmetric and formation of the full group is not guaranteed.

Suggested Citation

  • Waichman, Israel & Requate, Till & Korzhenevych, Artem, 2013. "Equal split in the informal market for group train travel," Economics Letters, Elsevier, vol. 118(2), pages 327-329.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:327-329
    DOI: 10.1016/j.econlet.2012.10.013
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    More about this item

    Keywords

    Natural experiment; Bargaining; Focal point; Equal split;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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