Open access passenger rail competition in Slovakia – Experience from the Bratislava–Košice line

Kvizda, Martin; Solnička, Jakub

doi:10.1016/j.jrtpm.2019.100143

Cited by 11 publications

(6 citation statements)

References 14 publications

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“…However, no price elasticity is found in the country, whatever is the state of competition (Fitzová et al, 2021). A similar price war occurred in Slovakia, where the incumbent compensated regional trains subtracted passengers and revenues to RegioJet (Kvizda & Solnička, 2019). In Sweden, Fröidh & Nelldal (2015) report the price levels on some routes before the entry of MTR, when only niche operators were on tracks.…”

Section: European Casesmentioning

confidence: 99%

“…Slovakia partially shares the history of Czechia, but without “national” competitors, the incumbent was challenged by Czech ones. But, differently from Czechia, the government was openly hostile and introduced numerous advantages for the domestic incumbent, including extensive asymmetrical free tickets programs (Tomeš & Jandová, 2018; Kvizda & Solnička, 2019).…”

Section: Open-access Competition In Europe and Focus On Pricesmentioning

confidence: 99%

See 1 more Smart Citation

A Difference-In-Difference Approach to Estimate the Price Effect of Market Entry in High-Speed Rail

Beria

Tolentino

Shtele

et al. 2022

Competition and Regulation in Network Industries

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The effect of competition on prices in the passenger transport sector can be difficult to estimate because of many influencing factors such as state regulation, demand, seasonality, and reactions of indirect competitors. A case of great interest in the rail sector is Italy, where on-track competition in the high-speed segment has been in place for nearly ten years. The paper aims at answering the question whether—and how much—incumbent’s prices are affected when competition starts on a route previously in monopoly. The case is the start of operations on the Turin–Milan–Venice route, where Italo entered in May 2018. Adopting a difference-in-difference approach, we check if Trenitalia changed the price strategy on the route before and after the entry, with respect to two control groups. The addition of placebo tests allows us to understand the ranges of significance of the results and to estimate the noise level of the estimates. Our findings suggest that the start of competition led to lower prices in the short-medium period. In the specific case, the Milano–Venezia route saw Trenitalia’s prices reduced by 21–26% (±2–5%) in a time span of 84–140 days after Italo’s entry and for advanced bookings from 2 to 10 days. Last-day prices remain unchanged, while early bookings are reduced by just 9%. This price reduction does not remain stable in the longer term, when other effects add up and blur the effect of the entry. Nevertheless, we keep observing a smaller, ∼15%, but still negative prices change.

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Section: European Casesmentioning

confidence: 99%

Section: Open-access Competition In Europe and Focus On Pricesmentioning

confidence: 99%

A Difference-In-Difference Approach to Estimate the Price Effect of Market Entry in High-Speed Rail

Beria

Tolentino

Shtele

et al. 2022

Competition and Regulation in Network Industries

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“…An interesting development is offered by the experience with open access entries in Slovakia . It started in 2014 when the intensive competition in the Czech Republic overflowed into the country and intensive competition began on the Bratislava–Žilina–Košice main line (see Masek et al, 2016, Tomes and Jandova 2018, Kvizda and Solnička 2019, and Desmaris & Croccolo, 2018). The intensive entry of (foreign) rail operators provoked a strong reaction from the national authorities, which introduced free tickets for pensioners, children, and students on the incumbents’ public-service obligation trains in an attempt to help the incumbent to repulse the competitive attack.…”

Section: Empirical Evidencementioning

confidence: 99%

Regulatory approaches to rail competitive entries

Tomeš

2022

Competition and Regulation in Network Industries

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This paper reviews the regulatory approaches to open access passenger rail competition. This kind of competition has developed substantially in the EU during the past decade. There have been major entries into the national main lines in Italy, Austria, the Czech Republic, and Sweden. These entries have been very popular with passengers and rail ridership has gone up substantially. However, there have also been costs to these entries. The operations of the new entrants are diminishing economies of density, leading to higher unit costs. Further challenges include cherry-picking behaviour, scarce infrastructure capacity, tariff disintegration, and long-term sustainability. The major question is whether the social benefits outweigh the costs. This paper aims to review emerging evidence in the field of open access entries and approaches to their regulation. The scope of this paper is open access passenger rail entries in Europe after 2000 with a particular emphasis on the major entries that took place in Italy, Austria, the Czech Republic, and Sweden after 2011. The contribution of this article to the existing literature is threefold. Firstly, it provides an up-to-date review of open access entries in Europe. Secondly, it combines the results of simulation studies with empirical evidence to provide an overview of market impacts. Lastly, it reviews the spectrum of regulatory approaches.

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“…Dolinayova et al (2022) analysed competition on the domestic rail passenger transport market under Public Service Obligation in some selected European countries and Slovak Republic. "Open access passenger rail competition in Slovakia -experience from the Bratislava-Košice line" research was presented by Kvizda and Solnička (2019). A very important part of the proper functioning of public transport is the correctly set and synchronised timetable in regional and long-distance public transport even in stochastic conditions (Zefreh et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Technological Aspects of Tendering in Rail Passenger Transport in Slovakia

Bulková

Gašparík²,

Poliak³

et al. 2023

Period. Polytech. Transp. Eng.

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The market for rail services in EU countries has long been inaccessible to the private sector. Transport services were provided by national operators, which led to the prevention of participation in fair and non-discriminatory competition in the provision of rail transport services. It is necessary to analyse the overall development in the operation of rail passenger transport, including the entry of private operators into the rail infrastructure. Based on the knowledge of the current situation, it is necessary to take measures to achieve compliance with the requirements of Regulation (EC) No 1370/2007. The paper characterizes the current state and the process of organizing public tenders in the Slovak Republic based on a case study and their process and proposes the gradual steps of the public tender in the form of a schedule. An important point of the whole process of the organization of the public tender is the correct setting of competencies, determination of the subject of the public tender and to propose a uniform methodology of the public tender, which may, however, vary in individual states due to the conditions of national legislation. Part of the unified methodology is the determination of the phases of the public tender process, which are part of the schedule of the public tender. The schedule of the public tender shows the entire cycle, resp. the duration of each phase of the tender for each proposed group of measures taken.

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Open access passenger rail competition in Slovakia – Experience from the Bratislava–Košice line

Cited by 11 publications

References 14 publications

A Difference-In-Difference Approach to Estimate the Price Effect of Market Entry in High-Speed Rail

A Difference-In-Difference Approach to Estimate the Price Effect of Market Entry in High-Speed Rail

Regulatory approaches to rail competitive entries

Technological Aspects of Tendering in Rail Passenger Transport in Slovakia

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