Analysis of Market Structure and Passenger Transportation Performance: Case Study of Nong Khai Customs House, Thai-Laos Frienship Bridge, Nong khai Province

This study aims to examine the situation, general management and performance of international private transportation services for passengers between Thailand and the Laos PDR at the Thai-Laos Friendship Bridge check point, Nong Khai Province. Other objectives are to analyze the market structure, competition behavior and the results of the passenger transportation industry’s performance. Both primary and secondary data were obtained by interviewing two entrepreneurs chosen by purposive sampling and analyzing monthly data obtained from related public and private organizations over the period July 2007 to June 2010. Entrepreneurs provided international bus services from cities within Thailand (Khon Kaen and Udon Thani) and the Lao PDR, regular shuttle buses at the bridge, and private hire vans and buses. Moreover, the industry concentration index and market competition are also used to examine the market structure. The results showed two companies operating in an oligopolistic market structure. The performance of both companies is nearly the same. The efficiency index measurement utilized for both companies were the same; however the results were slightly different. The levels of technology application within both orgainisations were also similar.