IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/halshs-03934485.html
   My bibliography  Save this paper

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 - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)

  • Patrice Bougette

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Florent Laroche

    (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper provides an empirical analysis of the determinants of service prices and frequencies of conventional high-speed rail (HSR) in France. We use original data for the period 09/2019-03/2020 and consider the intensity of intermodal competition and the diversification strategy of the incumbent rail operator. The main econometric results show that the determinants of the price per kilometer of conventional HSR services (1st and 2nd class) are partly common (especially for the variables explaining the technical characteristics of the routes and the alternative offer) and partly specific (competitive environment, economic and demographic environment). Frequencies depend mainly on travel time. On the routes for which the conventional HSR does not provide a quality service (frequency and/or price), a complementary alternative offer compensates the low frequency of conventional HSR 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," Working Papers halshs-03934485, HAL.
    • Handle: RePEc:hal:wpaper:halshs-03934485
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03934485v1
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-03934485v1/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    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).
    2. Fageda, Xavier & Sansano, Sergi, 2018. "Factors influencing prices and frequencies in the interurban bus market: Evidence from Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 266-276.
    3. 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.
    4. 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.
    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)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhu, Feng & Wu, Xu & Cao, Chengxuan, 2021. "High-speed rail and air transport competition under high flight delay conditions in China: A case study of the Beijing-Shanghai corridor," Utilities Policy, Elsevier, vol. 71(C).
    2. Jiang, Changmin & Wang, Kun & Wang, Qiang & Yang, Hangjun, 2022. "The Impact of High-Speed Rail Competition on Airline On-Time Performance," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 109-127.
    3. Chen, Zhe & Wang, Zhengli & Jiang, Hai, 2019. "Analyzing the heterogeneous impacts of high-speed rail entry on air travel in China: A hierarchical panel regression approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 127(C), pages 86-98.
    4. Li, Tao & Rong, Lili, 2021. "Impacts of service feature on vulnerability analysis of high-speed rail network," Transport Policy, Elsevier, vol. 110(C), pages 238-253.
    5. Min Su & Weixin Luan & Zeyang Li & Shulin Wan & Zhenchao Zhang, 2019. "Evolution and Determinants of an Air Transport Network: A Case Study of the Chinese Main Air Transport Network," Sustainability, MDPI, vol. 11(14), pages 1-20, July.
    6. Florent Laroche & Ayana Lamatkhanova, 2020. "Effects of open access competition on prices and frequencies on the interurban railway market: evidence from Europe," Working Papers halshs-02930864, HAL.
    7. Jiao, Jingjuan & Wang, Jiaoe & Zhang, Fangni & Jin, Fengjun & Liu, Wei, 2020. "Roles of accessibility, connectivity and spatial interdependence in realizing the economic impact of high-speed rail: Evidence from China," Transport Policy, Elsevier, vol. 91(C), pages 1-15.
    8. Mizutani, Jun & Sakai, Hiroki, 2023. "The effects of frequent flyer programs in the competition with high speed rail: A case study of air passenger preference in Japan," Journal of Air Transport Management, Elsevier, vol. 106(C).
    9. Mohsen Momenitabar & Raj Bridgelall & Zhila Dehdari Ebrahimi & Mohammad Arani, 2021. "Literature Review of Socioeconomic and Environmental Impacts of High-Speed Rail in the World," Sustainability, MDPI, vol. 13(21), pages 1-27, November.
    10. Zhang, Anming & Wan, Yulai & Yang, Hangjun, 2019. "Impacts of high-speed rail on airlines, airports and regional economies: A survey of recent research," Transport Policy, Elsevier, vol. 81(C), pages 1-19.
    11. Florent Laroche & Ayana Lamatkhanova, 2022. "Effects of open access competition on prices and frequencies on the interurban railway market: evidence from Europe," Post-Print halshs-02930864, HAL.
    12. Chen, Zhe & Jiang, Hai, 2020. "Impacts of high-speed rail on domestic air cargo traffic in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 1-13.
    13. 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).
    14. Xia, Wenyi & Jiang, Changmin & Wang, Kun & Zhang, Anming, 2019. "Air-rail revenue sharing in a multi-airport system: Effects on traffic and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 304-319.
    15. 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.
    16. Yang, Zhiwei & Li, Can & Jiao, Jingjuan & Liu, Wei & Zhang, Fangni, 2020. "On the joint impact of high-speed rail and megalopolis policy on regional economic growth in China," Transport Policy, Elsevier, vol. 99(C), pages 20-30.
    17. Bayissa Badada Badassa & Baiqing Sun & Lixin Qiao, 2020. "Sustainable Transport Infrastructure and Economic Returns: A Bibliometric and Visualization Analysis," Sustainability, MDPI, vol. 12(5), pages 1-24, March.
    18. 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).
    19. Yang, Xiaolan & Wang, Rui & Guo, Dongmei & Sun, Weizeng, 2020. "The reconfiguration effect of China's high-speed railway on intercity connection ——A study based on media attention index," Transport Policy, Elsevier, vol. 95(C), pages 47-56.
    20. 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).

    More about this item

    Keywords

    HSR; Intermodal competition; Multiproduct firms' strategies; Low-cost transportation; France; Working Papers du LAET;
    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:halshs-03934485. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.