This paper explores the effect of competition on prices and frequencies for the Interurban rail market in Europe. Intramodal competition is assessed by the Herfindahl-Hirschman Index (HHI). Intermodal competition takes into account new types of service such as coach and carpooling services. The originality of the analysis stems from the method and database used. The results show that intra-modal competition has a significant impact on frequencies but not on economy class prices because of oligopolistic organizations (duopoly). In addition, the effects of intermodal competition are limited mainly because of considerable differences between services in terms of travel time, comfort and users' preferences.
DATE OF FINAL VERSION: 17/02/2020
HIGHLIGHTS:-Intramodal competition is significantly related to frequency when intermodal competition is related to prices. -Most of the time, competition is limited to the main routes and duopolies.-Carpooling and coach services are more complementary than fully substitutable.
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