Working papers in Transport Economics
Competition in Swedish passenger railway : entry in an open-access market
Abstract: The Swedish market for passenger railway services has been
open to competition since the year 2010. Although minor entries have been
made since this date, the incumbent SJ only faced substantial competition
when MTR Express entered the Stockholm-Gothenburg line in March 2015. Using
unique Sweden ticket price data from operators' websites, this paper
investigates what effects this entry has had on market prices. The results
show that the incumbent's prices decreased by 12.8 percent on average
between March 2015 and June 2016. The price level of the competitor is well
below the average price that was offered on the railway market in the
pre-entry period. Further, the largest price reduction, in percentage
terms, was found on tickets booked 10 days before the departure date.
Finally, the decrease in the average price of the incumbent seems to be an
ongoing process, and a further drop in price would not be unexpected.
Keywords: Railway; Entry; Open access; Competition; Prices; Web crawler; (follow links to similar papers)
JEL-Codes: C10; L19; L92; R40; (follow links to similar papers)
39 pages, August 29, 2016
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