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Access pricing, infrastructure investment and intermodal competition

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  • de Rus, Ginés
  • Socorro, M. Pilar

Abstract

This paper considers the existence of a given transport infrastructure and analyzes the optimal conditions for investing in a complementary or rival new infrastructure. The model allows us to identify some key variables to be considered in cost–benefit analysis and highlights the importance of socially optimal access pricing in relation to investment decisions. The socially optimal conditions for investment depend on, among others, the cross-effects between different modes of transport, the volume of demand, the construction cost of the new infrastructure, and the restrictions faced by the regulator.

Suggested Citation

  • de Rus, Ginés & Socorro, M. Pilar, 2014. "Access pricing, infrastructure investment and intermodal competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 374-387.
    • Handle: RePEc:eee:transe:v:70:y:2014:i:c:p:374-387
    DOI: 10.1016/j.tre.2014.08.002
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Rategh, Yalda & Tamannaei, Mohammad & Zarei, Hamid, 2022. "A game-theoretic approach to an oligopolistic transportation market: Coopetition between incumbent systems subject to the entrance threat of an HSR service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 144-171.
    2. de Rus, Ginés & Socorro, M. Pilar, 2019. "Pricing and investment in alternative transport infrastructures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 96-107.
    3. Wang, Yixiao & Pels, Eric & Teunter, Ruud H. & Sun, Luoyi & Wu, Jianhong, 2023. "Railway liberalization, airport congestion toll, and infrastructure pricing: Modelling and numerical analysis for European and Chinese markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    4. Cui, Shana & Besanko, David, 2016. "Horizontal versus vertical separation in railway networks: Implications for network quality," Economics Letters, Elsevier, vol. 138(C), pages 78-80.
    5. Huang, Naqun & Lien, Jaimie W. & Zheng, Jie, 2023. "To acquire or compete? Government intervention in transportation under different route structures," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 172(C).
    6. David Besanko & Shana Cui, 2016. "Railway restructuring and organizational choice: network quality and welfare impacts," Journal of Regulatory Economics, Springer, vol. 50(2), pages 164-206, October.
    7. Tamannaei, Mohammad & Zarei, Hamid & Rasti-Barzoki, Morteza, 2021. "A game theoretic approach to sustainable freight transportation: Competition between road and intermodal road–rail systems with government intervention," Transportation Research Part B: Methodological, Elsevier, vol. 153(C), pages 272-295.
    8. Juan Santaló & M. Pilar Socorro, 2015. "Competencia Aeroportuaria y Modelos de Privatización," Studies on the Spanish Economy eee2015-09, FEDEA.
    9. Ginés de Rus, 2014. "The economic evaluation of infrastructure investment. Some inescapable tradeoffs," Working Papers 2014-16, FEDEA.
    10. Kuang, Zhonghong & Lian, Zeng & Lien, Jaimie W. & Zheng, Jie, 2020. "Serial and parallel duopoly competition in multi-segment transportation routes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    11. David Besanko & Shana Cui, 2019. "Regulated versus negotiated access pricing in vertically separated railway systems," Journal of Regulatory Economics, Springer, vol. 55(1), pages 1-32, February.
    12. Shana Cui & David E. M. Sappington, 2021. "Access pricing in network industries with mixed oligopoly," Journal of Regulatory Economics, Springer, vol. 59(3), pages 193-225, June.
    13. Socorro, M. Pilar & Betancor, Ofelia, 2020. "Air transport subsidies for resident passengers: The unexpected effects on competition," Research in Transportation Economics, Elsevier, vol. 79(C).
    14. Xuto, Praj & Bansal, Prateek & Anderson, Richard J. & Graham, Daniel J. & Hörcher, Daniel & Barron, Alexander, 2023. "Examining the impacts of capital investment in London’s Underground: A long-term analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 175(C).
    15. Ginés de Rus & Javier Campos & Daniel Graham & M. Pilar Socorro & Jorge Valido, 2020. "Evaluación Económica de Proyectos y Políticas de Transporte: Metodología y Aplicaciones. Parte 1: Metodología para el análisis coste-beneficio de proyectos y políticas de transporte," Working Papers 2020-11, FEDEA.
    16. de Rus Ginés & Socorro M. Pilar, 2017. "Planning, Evaluation and Financing of Transport Infrastructures: Rethinking the Basics," Review of Network Economics, De Gruyter, vol. 16(2), pages 143-160, June.

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