Strategic interactions between transport operators with several goals.

Author(s)
Clark, D.J. Jorgensen, F. & Pedersen, P.A.
Year
Abstract

This paper analyses competition between transport firms that have goals that extend beyond traditional profit maximisation. Specifically, operators maximise a weighted combination of profits and consumer surplus. We calculate equilibrium solutions for the case of symmetric firms producing symmetrically differentiated services, and compare the equilibrium prices, consumer surplus, and total surplus that arise from collusion, Cournot and Bertrand competition. The results are discussed in the light of the firms' pay-off functions, their costs, and the degree of substitutability or complementarity between the services.

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Publication

Library number
I E144961 /10 / ITRD E144961
Source

Journal of Transport Economics and Policy. 2009 /09. 43(3) Pp385-403 (20 Refs.)

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This publication is one of our other publications, and part of our extensive collection of road safety literature, that also includes the SWOV publications.