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Competition in Swedish passenger railway: Entry in an open-access market
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.ORCID iD: 0000-0002-9219-8493
2016 (English)Report (Other academic)
Abstract [en]

The Swedish market for passenger railway services has been open to competition since the year 2010. Although minor entries have been made since this date, the incumbent SJ only faced substantial competition when MTR Express entered the Stockholm-Gothenburg line in March 2015. Using unique Sweden ticket price data from operators' websites, this paper investigates what effects this entry has had on market prices.

The results show that the incumbent's prices decreased by 12.8 percent on average between March 2015 and June 2016. The price level of the competitor is well below the average price that was offered on the railway market in the pre-entry period. Further, the largest price reduction, in percentage terms, was found on tickets booked 10 days before the departure date. Finally, the decrease in the average price of the incumbent seems to be an ongoing process, and a further drop in price would not be unexpected.

Place, publisher, year, edition, pages
Stockholm: Centre for Transport Studies , 2016. , 39 p.
Series
CTS Working Paper, 2016:18
Keyword [en]
Competition, Impact study, Tariff
National Category
Economics
Research subject
J00 Railway: General works, surveys, comprehensive works, J13 Railway: Economics
Identifiers
URN: urn:nbn:se:vti:diva-10888OAI: oai:DiVA.org:vti-10888DiVA: diva2:967689
Projects
CTS 430
Available from: 2016-09-09 Created: 2016-09-09 Last updated: 2016-09-20Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf