Arbeitspapier

Competing Transport Networks

In a circular city model, I consider network design and pricing decisions for asingle fast transport connection that faces competition from a slower but betteraccessible transport mode. To access the fast transport network individuals haveto make complementary trips by slow mode. This fact has interesting implicationson the location decisions. I show that in the presence of competition the profit-maximizingand socially optimal decision would be to cluster the two stations. Bycontrast, in the absence of competition both a profit-maximizing firm and a socialplanner would locate the two stations on opposite sides of the circle.

Language
Englisch

Bibliographic citation
Series: Tinbergen Institute Discussion Paper ; No. 03-009/1

Classification
Wirtschaft
Transportation: General
Market Structure, Pricing, and Design: General
Subject
Networks
Transportation
Competition
Market area
Circular city.
Verkehrsträgerwettbewerb
Verkehrsteilung
Verkehrsweg
Theorie

Event
Geistige Schöpfung
(who)
van der Leij, Marco J.
Event
Veröffentlichung
(who)
Tinbergen Institute
(where)
Amsterdam and Rotterdam
(when)
2003

Handle
Last update
10.03.2025, 11:43 AM CET

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Object type

  • Arbeitspapier

Associated

  • van der Leij, Marco J.
  • Tinbergen Institute

Time of origin

  • 2003

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