Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174327
Authors: 
De Haas, Samuel
Schäfer, Jan Thomas
Year of Publication: 
2017
Series/Report no.: 
Joint Discussion Paper Series in Economics 31-2017
Abstract: 
We study effects on prices and quantities of a takeover in the rather concentrated German interurban bus industry. We empirically asses the effect of the takeover of Postbus by Flixbus on industry key features, using a route-level price data set containing prices for more than 6,000 routes in Germany for a period between September and December 2016. We find that average prices significantly increase and quantities decrease in the post-takeover phase. However, these results are mainly driven by the fact that Postbus was a low-cost supplier. The remaining providers do not seem to have increased their prices significantly in the post-takeover phase. This absence of a price increase despite the removal of a close competitor could be an indication of a strong impact of intermodal competition. This suggestion is confirmed by our empirical findings.
Subjects: 
Competition
Takeover
Interurban Bus Services
Germany
JEL: 
L11
L41
L92
K21
K23
Document Type: 
Working Paper

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