Tuesday, June 19, 2012
Posted by D. Daniel Sokol
Philippe Gagnepain (CES - Centre d'economie de la Sorbonne - Universite Paris I - Pantheon Sorbonne, Ecole d'Economie de Paris - Paris School of Economics), Marc Ivaldi (TSE - Toulouse School of Economics ) and Catherine Vibes (TSE - Toulouse School of Economics ) describe The industrial organization of competition in local bus services.
ABSTRACT: This article is aimed at deepening our understanding of the functioning of competition in the local bus transportation industry and to evaluate its effectiveness. It provides an overview of the competitive constraints that are at work in the industry as discussed in the economic literature, and sketches empirical tests to check whether the intuitions provided by the economists are in line with the reality of the industry.