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A model of internal and external competition in a High Speed Rail line

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  • Álvarez-SanJaime, Óscar
  • Cantos-Sanchez, Pedro
  • Moner-Colonques, Rafael
  • Sempere-Monerris, Jose J.

Abstract

This paper is a contribution to evaluate structural and behavioral changes in railway passenger markets. The novel elements of our analysis are the following: (i) the consideration of inter-modal and intra-modal competition, (ii) the presence of public and private operators, and (iii) endogenous service frequency. After calibrating the model using actual data from two Spanish High Speed Rail lines, simulation exercises allow us to conclude the following. Privatization, whether entry occurs or not, would prompt an increase in prices and a reduction in the number of train services, eventually leading to welfare decreases, as compared with a regime where the incumbent rail operator remained public. Entry is found to be welfare improving only when it generates large increases in traffic. Otherwise welfare losses would materialize even though entry raised some efficiency gains.

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  • Álvarez-SanJaime, Óscar & Cantos-Sanchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, Jose J., 2015. "A model of internal and external competition in a High Speed Rail line," Economics of Transportation, Elsevier, vol. 4(3), pages 178-187.
    • Handle: RePEc:eee:ecotra:v:4:y:2015:i:3:p:178-187
    DOI: 10.1016/j.ecotra.2015.05.004
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    7. Álvarez-SanJaime, Óscar & Cantos-Sanchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, Jose J., 2016. "Rail access charges and internal competition in high speed trains," Transport Policy, Elsevier, vol. 49(C), pages 184-195.
    8. Badura, Ondřej & Melecký, Aleš & Melecký, Martin, 2023. "Liberalizing passenger rail: The effect of competition on local unemployment," Economics of Transportation, Elsevier, vol. 36(C).
    9. Borsati, Mattia & Albalate, Daniel, 2020. "On the modal shift from motorway to high-speed rail: evidence from Italy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 145-164.
    10. Gaggero, Alberto A. & Ogrzewalla, Lukas & Bubalo, Branko, 2019. "Pricing of the long-distance bus service in Europe: The case of Flixbus," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    11. Ristić, Bojan & Stojadinović, Nikola & Trifunović, Dejan, 2022. "Conditions for effective on-track competition in the European passenger railway market: A yardstick for regulations," Transport Policy, Elsevier, vol. 119(C), pages 1-15.
    12. Álvarez-SanJaime, Óscar & Cantos-Sanchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, Jose J., 2020. "Pricing and infrastructure fees in shaping cooperation in a model of high-speed rail and airline competition," Transportation Research Part B: Methodological, Elsevier, vol. 140(C), pages 22-41.
    13. Chai, Jian & Zhou, Youhong & Zhou, Xiaoyang & Wang, Shouyang & Zhang, Zhe George & Liu, Zenghui, 2018. "Analysis on shock effect of China’s high-speed railway on aviation transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 108(C), pages 35-44.
    14. Li, Xue-yan & Li, Xue-mei & Li, Xue-wei & Qiu, He-ting, 2017. "Multi-agent fare optimization model of two modes problem and its analysis based on edge of chaos," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 469(C), pages 405-419.
    15. Brand, Christina & Sieg, Gernot, 2022. "An integral interval timetable for long-distance passenger rail services: Time to reconsider targeting on-track competition," Economics of Transportation, Elsevier, vol. 32(C).

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