Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/126110 
Authors: 
Year of Publication: 
2016
Series/Report no.: 
DIW Discussion Papers No. 1539
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
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.
Subjects: 
Fehmarn Belt Fixed Link
transportation economics
competition analysis
route choice
asymmetric duopoly
JEL: 
R42
D43
L91
Document Type: 
Working Paper

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