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The intercity bus market in Germany was deregulated in 2013. As a consequence, there is now a dense network of intercity bus lines. For the first time, the German state-owned railway company Deutsche Bahn AG faces intermodal competition in public intercity passenger land transport on a large number of lines. This paper examines market entry factors for intercity bus companies and price reactions of the incumbent railway company from a theoretical perspective. Our model builds on Salop's circular city model to describe the horizontal product differentiation among the bus companies. At the same time, the railway company occupies the center of the circle and offers a higher product quality than the buses. It dominates the market, while a number of bus companies constitute an oligopolistic competitive fringe. In the subsequent comparative statics analysis, it is shown that the quality differential between the train and bus services have a considerable effect on market entry decisions by buses as well as on price reactions by the incumbent railway company. In particular, on routes where the quality advantage of railway services is rather small, buses are more likely to enter and the railway company will respond with a stronger price reduction than on other routes.
Study to assess the concept of intermodal passenger transportation, also called modal integration, in the form of transit/surface intercity, air/transit, air/surface intercity, and intercity bus/rail. The report focuses on policy issues associated with modal integration, including identifying the advantages and disadvantages of integration, the prerequisites for integration (particularly the commercial, institutional, and policy factors), and the opportunities in Canada. Cases of modal integration were examined in Canada, the United States, and Europe, and data are given on the degree of modal integration currently existing at the major Canadian passenger terminals.
A continuous requirement for better urban transport systems and the need for a healthier environment has resulted in an increasing demand for new solutions. Innovative systems, new approaches and original ideas need to be thoroughly tested and critically evaluated before they can be implemented in practice. Moreover, there is a growing need for integration with telecommunications systems and IT applications in order to improve safety, security and efficiency. This volume also addresses the need to solve important pollution problems associated with urban transport in order to achieve a healthier environment. The variety of topics covered by the included research works, which were presented at the 26th International Conference on Urban Transport and the Environment, reflect the complex interaction of urban transport systems with their environment and the need to establish integrated strategies. The goal is to arrive at optimal socio-economic solutions while reducing the negative environmental impacts of current transportation systems.
Pursuant to a congressional request, GAO examined the condition of the intercity bus industry since its deregulation in 1982, focusing on: (1) the social and economic implications of this decline; (2) state efforts to support intercity bus service; and (3) policy strategies for the Department of Transportation (DOT) to consider as it develops guidelines to address intercity bus needs. GAO found that: (1) regulatory relief for the intercity bus industry in 1982 did not revitalize the industry, and shrinking rural populations, increased competition from air and rail transportation, and increased car ownership led to reduced bus ridership; (2) intercity buses went from serving almost 12,000 locations in 1982 to serving fewer than 6,000 locations in 1991, and over the same period, the bus industry's share of intercity passenger-miles on public transportation fell from 12 percent to 6 percent; (3) the social and economic effects of declining intercity bus service are difficult to assess because data on the number and characteristics of users of the abandoned routes are scant, but available evidence suggests that the affected riders are those least able to afford and least likely to have access to alternative transportation; (4) 20 states have ongoing efforts to maintain or support intercity bus service, which include financial support for individual bus routes, funding for construction or rehabilitation of intermodal terminals used by buses, and providing new vehicles to bus firms at reduced cost; (5) the Intermodal Surface Transportation Efficiency Act of 1991 recognized the need to expand federal transit activities by requiring states to spend at least 15 percent of their allocations to assist intercity bus service; and (6) some states could face difficulty using those funds effectively because DOT has not decided what activities will be eligible to receive set-aside funds and because of federal labor protection requirements.