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on Transport Economics |
| By: | Adriaan Hendrik van der Weijde (VU University Amsterdam); Erik T. Verhoef (VU University Amsterdam); Vincent van den Berg (VU University Amsterdam) |
| Abstract: | We analyse the behaviour 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, we analyse 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, we consider a simple transport network consisting of two serial segments and two parallel congestible modes of transport. We 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. We then use numerical simulations to show that, contrary to the results obtained in classic studies on vertical competition, monopolistic fares are not always higher than duopolistic fares; the opposite can also occur. We also explore how different parameters influence the price differential, and how this affects welfare. |
| Keywords: | Public transport; congestion; market structure; market design |
| JEL: | L10 L92 R41 R48 |
| Date: | 2012–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20120116&r=tre |
| By: | Shawn Arita (University of Hawaii at Manoa, Department of Economics); Sumner La Croix (UHERO, University of Hawaii at Manoa); James Mak (UHERO, University of Hawaii at Manoa) |
| Abstract: | ChinaÕs ÒApproved Destination Status (ADS) policy allows citizens of mainland China to take pleasure trips abroad on group package tours to countries that have negotiated and implemented agreements with China. In this paper, we examine the reasons for this unique preferential and incremental travel liberalization system and how it affects mainland Chinese outbound pleasure travel. |
| Keywords: | Tourism, Chinese Outbound Travel, China Approved Destination Status Policy |
| JEL: | F13 F14 L83 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2012-6r&r=tre |
| By: | Wenkai Li (International University of Japan); Mark Wallace (Monash University) |
| Abstract: | Airlines are constantly facing operational disruptions such as reduced airport capacity because of bad weather or strikes, unexpected aircraft unavailability due to mechanical failures, and delayed or cancelled flights. In view of this, ROADEF organized a worldwide challenge to explore the problems encountered in real world airlines when disruptions happen and find approaches to tackle them. In this paper, a new continuous time aircraft routing model is developed which can minimize aircraft delay cost accurately and efficiently handle all types of disruptions encountered in ROADEF. Applying a new decomposition algorithm, near optimal solutions for aircraft routing can be obtained. A passenger re-accommodation model is solved subsequently using the results from the aircraft routing model as input. Competitive results are obtained applying the proposed approach to instances provided by ROADEF. |
| Keywords: | Disruption Management, ROADEF Challenge 2009, Airline |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2012_18&r=tre |
| By: | Daniel Albalate (Faculty of Economics, University of Barcelona); Jordi Perdiguero (Departament d'Economia Aplicada. Universitat Autònoma de Barcelona) |
| Abstract: | Regulatory and funding asymmetries in the Spanish motorway network produce huge differences in the structure of gasoline markets by motorway type: free or toll. While competition is encouraged among gas stations on free motorways, the regulations for toll motorways allow private concessionaires to auction all gas stations to the same provider, thereby limiting competition and consolidating market power. This paper reports how this regulatory asymmetry results in higher prices and fewer gas stations. Specifically, we show that competition is constrained on toll motorways by the granting of geographical monopolies, resulting in a small number of rivals operating in close proximity to each other, and allowing gas stations to operate as local monopolies. The lack of competition would seem to account for the price differential between toll and free motorways. According to available evidence, deregulation measures affecting toll motorway concessions could help to mitigate price inefficiencies and increase consumer welfare. |
| Keywords: | Geographical competition, Regional Monopolies, Gasoline prices, Motorways JEL classification: L11, L12, L43 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201218&r=tre |
| By: | Ejaz Ghani (World Bank); Grover Goswami (World Bank); William R. Kerr (Harvard Business School, Entrepreneurial Management Unit) |
| Abstract: | We investigate the impact of the Golden Quadrilateral (GQ) highway project on the Indian organized manufacturing sector using enterprise data. The GQ project upgraded the quality and width of 5,846 km of roads in India. We use a difference-in-difference estimation strategy to compare non-nodal districts based upon their distance from the highway system. We find several positive effects for non-nodal districts located 0-10 km from GQ that are not present in districts 10-50 km away, most notably higher entry rates and increases in plant productivity. These results are not present for districts located on another major highway system, the North-South East-West corridor (NS-EW). Improvements for portions of the NS-EW system were planned to occur at the same time as GQ but were subsequently delayed. Additional tests show that the GQ project's effect operates in part through a stronger sorting of land-intensive industries from nodal districts to non-nodal districts located on the GQ network. The GQ upgrades further helped spread economic activity to moderate-density districts and intermediate cities. |
| Keywords: | Highways, roads, infrastructure, India, development, manufacturing, density, rent. |
| JEL: | L10 L25 L26 L60 L80 L90 L91 L92 M13 O10 R00 R10 R11 R14 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:13-040&r=tre |
| By: | Ejaz Ghani; Arti Grover Goswami; William R. Kerr |
| Abstract: | We investigate the impact of the Golden Quadrilateral (GQ) highway project on the Indian organized manufacturing sector using enterprise data. The GQ project upgraded the quality and width of 5,846 km of roads in India. We use a difference-in-difference estimation strategy to compare non-nodal districts based upon their distance from the highway system. We find several positive effects for non-nodal districts located 0-10 km from GQ that are not present in districts 10-50 km away, most notably higher entry rates and increases in plant productivity. These results are not present for districts located on another major highway system, the North-South East-West corridor (NS-EW). Improvements for portions of the NS-EW system were planned to occur at the same time as GQ but were subsequently delayed. Additional tests show that the GQ project’s effect operates in part through a stronger sorting of land-intensive industries from nodal districts to non-nodal districts located on the GQ network. The GQ upgrades further helped spread economic activity to moderate-density districts and intermediate cities. |
| JEL: | L10 L25 L26 L60 L90 L91 L92 M13 O10 R00 R10 R11 R14 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18524&r=tre |
| By: | Haizhen Lin (Department of Business Economics and Public Policy, Indiana University Kelley School of Business); Yijia Wang (NERA Economic Consulting) |
| Abstract: | We study the relationship between competition and price discrimination through an empirical examination of hourly price schedules in the parking garage industry. We find that the degree of price schedule curvature decreases with competition, implying a greater proportionate drop in low-end prices than in high-end prices when competition intensifies. We provide an explanation for our findings using differences in search behaviors between short- and long-term customers. |
| Keywords: | competition, price curvature, price discrimination, consumer search, parking garage industry |
| JEL: | L0 L11 L12 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:iuk:wpaper:2012-07&r=tre |