Author: Gómez-Lobo, Andrés

Source: Journal of Transport Economics and Policy (JTEP), Volume 41, Number 2, May 2007 , pp. 283-308(26)

Publisher: Journal of Transport Economics and Policy

Abstract:

In this paper a model is presented based on ideas borrowed from the job search and price dispersion literature to characterise the pricing equilibrium of a competitive bus market in a more general setting than previously found in the literature. The results indicate that collusion is not required to obtain a monopoly price structure. Rather collusion can be interpreted as a coordination device among operators to reach their most preferred equilibrium. The results rationalise some of the stylised facts observed in liberalisation experiences around the world, including rising prices, excessive entry, convergence of fares among operators, and other observed behaviour.

References: 17 references open in new window

Articles that cite this article?

Document Type: Research article

Publication date: 2007-05-01

More about this publication?

• JTEP is international both in terms of authors and readership. Since it first appeared, more than 650 papers have been published from Europe, North America, the Pacific Rim/Australasia, Africa, Asia, and South America. This international variety is also reflected in the readership.

  Published three times a year, the journal covers all modes of transport and a wide variety of economic themes, including: Passenger Transport, Freight Transport, Shipping, Aviation, Transport Infrastructure, Environment & Energy, Traffic, Planning and Policy, Safety, Costs & Pricing, Competition, Evaluation, Productivity, Demand & Elasticities, Service Quality, Economies of Scale, Economics Regulation and Choice.

  A complete indexing and article service is available FREE from 1967 to 2000

• Editorial Board
• Submit a Paper
• Subscribe to this Title
• Library Recommendation Form
• About us
• ingentaconnect is not responsible for the content or availability of external websites

Related content

• In this: publication
• By this: publisher
• In this Subject: Economics ,  Transportation
• By this author: Gómez-Lobo, Andrés

Website © Publishing Technology. Article copyright remains with the publisher, society or author(s) as specified within the article.

• Terms and conditions
• Privacy policy
• Information for advertisers