We provide an empirical assessment of the German interurban bus industry two years after its deregulation in January 2013. In addition to a general description of key developments of the industry, we use a unique route-level price data set to study both competitive interaction in general and the potential price effects of a recently announced merger of the two largest
players in the market in particular. We find that route-level average prices, inter alia, do not only depend on the number of competitors but especially on the composition of firms
operating on a particular route. Although our empirical results suggest short-term price
increases on certain route types post-merger, it remains an open question whether the merger
should be classified as anticompetitive.
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