Competition in multi-modal transport networks: A dynamic approach

The authors analyze the behavior of market participants in a multi-modal commuter network, where roads are not priced, but public transport has a usage fee, which is set while taking the effects on the roads into account. In particular, the authors analyze the difference between markets with a monopolistic public transport operator, which operates all public transport links, and markets in which separate operators own each public transport link. To do so, the authors consider a simple dynamic transport network consisting of two serial segments and two parallel congestible modes of transport. The authors obtain a reduced form of the public transport operator’s optimal fare setting problem and show that, even if the total travel demand is inelastic, serial Bertrand–Nash competition on the public transport links leads to different fares than a serial monopoly; a result not observed in a static model. This results from the fact that trip timing decisions, and therefore the generalized prices of all commuters, are influenced by all fares in the network. The authors then use numerical simulations to show that, contrary to the results obtained in classic studies on vertical competition, monopolistic fares are not always lower than duopolistic fares; the opposite can also occur. The authors also explore how different parameters influence the price differential, and how this affects welfare.

• Record URL:
  https://doi.org/10.1016/j.trb.2013.03.003
• Record URL:
  http://www.sciencedirect.com/science/article/pii/S019126151300043X
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/01912615
• Supplemental Notes:
  • Abstract reprinted with permission from Elsevier.
• Authors:
  • van der Weijde, Adriaan Hendrik
  • Verhoef, Erik T
  • van den Berg, Vincent A C
• Publication Date: 2013-7

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 31-44
• Serial:
  • Transportation Research Part B: Methodological
  • Volume: 53
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 0191-2615
  • Serial URL: http://www.sciencedirect.com/science/journal/01912615

Subject/Index Terms

• TRT Terms: Competition; Congestion pricing; Dynamic models; Fares; Markets; Mileage-based user fees; Monopoly; Multimodal transportation; Public transit; Traffic congestion
• Subject Areas: Finance; Highways; Planning and Forecasting; Public Transportation; I10: Economics and Administration; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01484425
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 19 2013 3:14PM