ON COMPETITION AND PRODUCT DIFFERENTIATION IN URBAN TRANSPORTATION: THE SAN FRANCISCO BAY AREA

This article considers Cournot-like competition among two public transit oligopolists (a rapid-rail system modeled on the Bay Area's BART, and a parallel bus system) in the presence of a competitively supplied third alternative. The oligopolists compete in both service quality and price, and do so myopically. With demand and cost data from the Bay Area numerically estimated equilibria are obtained and studied. The results indicate that: (1) with fares and product characteristics freely variable, neither mode need operate at a loss; (2) the rapid-rail mode can cover costs from the farebox even if the bus mode offers money-losing service; (3) the equilibria exhibit product differentiation, in sharp contrast to the presently observed situation.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/2247096
• Corporate Authors:

  American Telephone and Telegraph Company

  195 Broadway
  New York, NY  United States  10007
• Authors:
  • Viton, P A
• Publication Date: 1981

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 362-379
• Serial:
  • Bell Journal of Economics
  • Volume: 12
  • Issue Number: 2
  • Publisher: American Telephone and Telegraph Company
  • ISSN: 0361-915X
  • Serial URL: http://www.jstor.org/journals/0361915X.html

Subject/Index Terms

• TRT Terms: Bus transit; Competition; Mode choice; Operating costs; Rapid transit; Revenues; Ridership
• Identifier Terms: San Francisco Bay Area Rapid Transit District
• Old TRIS Terms: Bus transportation (Intracity); Modal selection
• Subject Areas: Finance; Planning and Forecasting; Public Transportation; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00345393
• Record Type: Publication
• Files: TRIS
• Created Date: Feb 27 1982 12:00AM