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Deregulation, Competition, and Consolidation: The Case of the German Interurban Bus Industry

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  • Niklas S. Dürr
  • Sven Heim
  • Kai Hüschelrath

Abstract

We make use of a unique route-level price data set of the recently deregulated German interurban bus industry to study both competitive interaction in general, and the potential price effects of a merger between the two largest players in particular. We find that route-level average prices, inter alia, depend not only on the number of competitors, but especially on the composition of firms operating on a particular route. Although our empirical results suggest short-term price increases on certain route types post-merger, it remains an open question whether the merger should be classified as anticompetitive.

Suggested Citation

  • Niklas S. Dürr & Sven Heim & Kai Hüschelrath, 2016. "Deregulation, Competition, and Consolidation: The Case of the German Interurban Bus Industry," Journal of Transport Economics and Policy, University of Bath, vol. 50(2), pages 164-16-188.
    • Handle: RePEc:tpe:jtecpo:2016:50:2:164--188
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    1. Severin Borenstein & Nancy L. Rose, 2007. "How Airline Markets Work...Or Do They? Regulatory Reform in the Airline Industry," NBER Working Papers 13452, National Bureau of Economic Research, Inc.
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    4. Sven Maertens, 2012. "Buslinienfernverkehr in Deutschland — effiziente Ausgestaltung einer Liberalisierung," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 92(8), pages 554-562, August.
    5. Martin Schiefelbusch, 2013. "Past and Future Regulation of Interurban Coach Services in Germany," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 299-305, May.
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    Cited by:

    1. Dürr, Niklas S. & Hüschelrath, Kai, 2015. "Competition in the German interurban bus industry: A snapshot two years after liberalization," ZEW Discussion Papers 15-062, ZEW - Leibniz Centre for European Economic Research.
    2. Riku Buri & Miika Heinonen & Jonatan Kanervo & Joel Karjalainen, 2024. "The effects of entry deregulation: evidence from interurban passenger transport," Journal of Regulatory Economics, Springer, vol. 66(2), pages 181-204, December.
    3. Blume, Maximilian & Oberländer, Anna Maria & Röglinger, Maximilian & Rosemann, Michael & Wyrtki, Katrin, 2020. "Ex ante assessment of disruptive threats: Identifying relevant threats before one is disrupted," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    4. Beestermöller, Matthias Gerhard & Jessen-Thiesen, Levke & Sandkamp, Alexander-Nikolai, 2023. "Striking evidence: The impact of railway strikes on competition from intercity bus services in Germany," Kiel Working Papers 2251, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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