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Striking Evidence? Demand Persistence for Inter-City Buses from German Railway Strikes

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  • Beestermöller, Matthias

Abstract

This paper investigates the effect of the largest rail strikes in German history in 2014-2015 on long-distance buses – a newly liberalized market. Using a novel dataset of detailed bus ticket sales and rail cancellations, I find that the primary channel that drives ticket sales during the strike is whether the absolute bus travel time was sufficiently short. In a difference-indifferences framework, I exploit this variation to identify any demand persistence. Although the common trend assumption does not seem to be completely tenable in the given context, my results point to a persistent effect on the ticket sales for inter-city buses on the affected routes.

Suggested Citation

  • Beestermöller, Matthias, 2017. "Striking Evidence? Demand Persistence for Inter-City Buses from German Railway Strikes," Discussion Papers in Economics 31768, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenec:31768
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    File URL: https://epub.ub.uni-muenchen.de/31768/1/Beesterm%C3%B6ller%202017.pdf
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    More about this item

    Keywords

    Transportation; Long-Run Demand Effects; Intermodal Substitution; Strike;
    All these keywords.

    JEL classification:

    • 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
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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