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What Drive HSR' Prices and Frequencies? An Analysis of Intermodal Competition and Multiproduct Incumbent's Strategies in the French Market

Author

Listed:
  • Thierry Blayac

    (CEE-M, Univ Montpellier, CNRS, INRAE, Institut Agro, Montpellier, France)

  • Patrice Bougette

    (Université Côte d'Azur, CNRS, GREDEG, France)

  • Florent Laroche

    (Université Lyon 2
    LAET, CNRS, France)

Abstract

This paper presents an empirical analysis that examines the factors influencing service prices and frequencies of conventional high-speed trains (HSTs) in France. The study utilizes original data spanning from September 2019 to March 2020, focusing on the level of intermodal competition and the diversification strategy employed by the primary rail operator. The primary findings of the econometric analysis reveal that the determinants of the price per kilometer for both first and second-class conventional HST services exhibit some shared factors, particularly in relation to the technical characteristics of the routes and alternative options available. However, certain factors are specific to each category, such as the competitive environment, economic conditions, and demographic factors. The frequency of HST services is primarily influenced by travel time. In cases where conventional HSTs do not offer satisfactory service quality in terms of frequency and/or price, there is an auxiliary alternative option available to compensate for the limited frequency of conventional HST services.

Suggested Citation

  • Thierry Blayac & Patrice Bougette & Florent Laroche, 2023. "What Drive HSR' Prices and Frequencies? An Analysis of Intermodal Competition and Multiproduct Incumbent's Strategies in the French Market," GREDEG Working Papers 2023-01, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France, revised May 2024.
    • Handle: RePEc:gre:wpaper:2023-01
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    References listed on IDEAS

    as
    1. Bergantino, Angela Stefania & Madio, Leonardo, 2020. "Intermodal competition and substitution. HSR versus air transport: Understanding the socio-economic determinants of modal choice," Research in Transportation Economics, Elsevier, vol. 79(C).
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    3. Crozet, Yves & Chassagne, Florian, 2013. "Rail access charges in France: Beyond the opposition between competition and financing," Research in Transportation Economics, Elsevier, vol. 39(1), pages 247-254.
    4. Zhang, Fangni & Graham, Daniel J. & Wong, Mark Siu Chun, 2018. "Quantifying the substitutability and complementarity between high-speed rail and air transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 191-215.
    5. Zhang, Rui & Johnson, Daniel & Zhao, Weiming & Nash, Chris, 2019. "Competition of airline and high-speed rail in terms of price and frequency: Empirical study from China," Transport Policy, Elsevier, vol. 78(C), pages 8-18.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    HSR; Intermodal competition; Multiproduct firms' strategies; Low-cost transportation; France;
    All these keywords.

    JEL classification:

    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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