Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2003-01-23
Number: 03-009/1
Author-Name: Marco J. van der Leij
Author-Email: mvanderleij@few.eur.nl
Author-Workplace-Name: Faculty of Economics, Erasmus University Rotterdam
Title: Competing Transport Networks
Abstract: In a circular city model, I consider network design and pricing decisions for asingle fast transport connection that faces competition from a slower but betteraccessible transport mode. To access the fast transport network individuals haveto make complementary trips by slow mode. This fact has interesting implicationson the location decisions. I show that in the presence of competition the profit-maximizingand socially optimal decision would be to cluster the two stations. Bycontrast, in the absence of competition both a profit-maximizing firm and a socialplanner would locate the two stations on opposite sides of the circle.
Classification-JEL: L91; D40.
Keywords: Networks; Transportation; Competition; Market area; Circular city.
File-Url: https://papers.tinbergen.nl/03009.pdf
File-Format: application/pdf
File-Size: 227434 bytes
Handle: RePEc:tin:wpaper:20030009