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http://hdl.handle.net/10419/30152
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| Title: | | Entry and competition in freight transport: the case of a prospective transalpine rail link between France and Italy  |
| Authors: | | Prady, Delphine Ullrich, Hannes |
| Issue Date: | | 2010 |
| Series/Report no.: | | ZEW Discussion Papers 10-010 |
| 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. |
| Subjects: | | Transalpine freight New rail infrastructure Simulation model Competition |
| JEL: | | R41 L92 H54 L13 C63 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
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