We build a theoretical model to study different air-rail cooperation scenarios. We investigate two possible air-rail partnerships between a rail operator and either a domestic airline or a foreign airline. When a partnership is formed, an investment to improve the air-rail connecting service is allowed at a cost before the service is launched. We find that the cooperation level, the equilibrium partnership scenarios when air-rail cooperation is exclusive or non-exclusive, as well as the comparisons of social welfare under different partnership scenarios, all depend on the pre-investment quality of air-rail service compared with the quality of air-air service. We further apply our model to the real-life case of Strasbourg-Paris-Dubai market, showing that other factors, such as price sensitivity of demand, horizontal differentiation between air and rail, and asymmetries in partnership investment costs, also affect cooperation level.

Air-rail cooperation: Partnership level, market structure and welfare implications / Jiang, Changmin; D'Alfonso, Tiziana; Wan, Yulai. - In: TRANSPORTATION RESEARCH PART B-METHODOLOGICAL. - ISSN 0191-2615. - STAMPA. - 104:(2017), pp. 461-482. [10.1016/j.trb.2017.01.006]

Air-rail cooperation: Partnership level, market structure and welfare implications

D'ALFONSO, TIZIANA;
2017

Abstract

We build a theoretical model to study different air-rail cooperation scenarios. We investigate two possible air-rail partnerships between a rail operator and either a domestic airline or a foreign airline. When a partnership is formed, an investment to improve the air-rail connecting service is allowed at a cost before the service is launched. We find that the cooperation level, the equilibrium partnership scenarios when air-rail cooperation is exclusive or non-exclusive, as well as the comparisons of social welfare under different partnership scenarios, all depend on the pre-investment quality of air-rail service compared with the quality of air-air service. We further apply our model to the real-life case of Strasbourg-Paris-Dubai market, showing that other factors, such as price sensitivity of demand, horizontal differentiation between air and rail, and asymmetries in partnership investment costs, also affect cooperation level.
2017
Airline; Cooperation; Domestic partnership; International partnership; Rail; Transportation; Management Science and Operations Research
01 Pubblicazione su rivista::01a Articolo in rivista
Air-rail cooperation: Partnership level, market structure and welfare implications / Jiang, Changmin; D'Alfonso, Tiziana; Wan, Yulai. - In: TRANSPORTATION RESEARCH PART B-METHODOLOGICAL. - ISSN 0191-2615. - STAMPA. - 104:(2017), pp. 461-482. [10.1016/j.trb.2017.01.006]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/958656
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