The Fehmarn Belt duopoly: Can the ferry compete with a tunnel?

Arbeitspapier

The Fehmarn Belt is a strait between Denmark and Germany, currently served by a ferry. This note analyses the theory of competition between the ferry and a planned tunnel, the Fehmarn Belt Fixed Link. The model is an asymmetric duopoly and addresses two questions: 1. Will the tunnel induce the ferry to exit the market, once it operates? 2. Will the tunnel's toll revenue suffice to cover its cost? To complement the theoretical analysis, the note provides results of a numerical application.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 1539

Classification and Topics

• Classification: Wirtschaft ; Transportation Economics: Government and Private Investment Analysis; Road Maintenance, Transportation Planning ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Transportation: General
• Subject: Fehmarn Belt Fixed Link ; transportation economics ; competition analysis ; route choice ; asymmetric duopoly

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Aigner, Rafael
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/126110
• Last update: 10.03.2025, 11:45 AM CET