Entry and competition in freight transport : the case of a prospective transalpine rail link between France and Italy


Prady, Delphine ; Ullrich, Hannes


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URL: http://ub-madoc.bib.uni-mannheim.de/2881
URN: urn:nbn:de:bsz:180-madoc-28816
Document Type: Working paper
Year of publication: 2010
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L13 H54 R41 L92 C63 ,
Subject headings (SWD): Frankreich , Italien , Alpen , Tunnel , Güterverkehr , Verkehrsmittelwahl , Wettbewerb , Marktanteil , Konsumentenrente
Keywords (English): Transalpine freight , new rail infrastructure , simulation model , competition
Abstract: We analyze the expected effects of building a rail tunnel between Lyon and Turin on i) the market shares of the established and the new suppliers, and ii) consumer surplus. The prospective project consists of a 53km rail tunnel providing freight shippers with a new alpine path. We calibrate an equilibrium model where freight shippers choose a mode and alpine path to ship goods from a given origin to a given destination. Freight carriers strategically set prices for the differentiated products they supply. Deriving the market equilibrium, we simulate the entry of a quality-improved product and test its competitive viability. The prospective alpine path proves both competitive and welfare-enhancing on the regional market, loses its competitive edge on the wider North-South market, and leads to a modal shift on the West-East market. We argue that the new infrastructure is only one tool out of a global modal shift-oriented policy toolbox.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Prady, Delphine ; Ullrich, Hannes (2010) Entry and competition in freight transport : the case of a prospective transalpine rail link between France and Italy. Open Access [Working paper]
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