Working Paper: CEPR ID: DP5396
Authors: Rafael Lalive; Armin Schmutzler
Abstract: This paper studies the effects of introducing competition for local passenger railway markets in the German state of Baden-Württemberg. We compare the evolution of the frequency of service on lines that were exposed to competition for the market and lines that were not. Our results suggest that the competitively procured lines enjoyed a stronger growth of the frequency of service than those that were not procured competitively, even after controlling for various line characteristics that might have an independent influence on the frequency of service. Our results further suggest that the effects of competition may depend strongly on the operator.
Keywords: competition for the market; liberalization; passenger railways; procurement auctions
JEL Codes: D43; D44; R48
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Competitive procurement status (H57) | Service frequency (C41) |
| Competition for the market (L13) | Service quality (L15) |
| Competitive procurement status (H57) | Agencies demanding higher service quality (L84) |
| Line characteristics (C23) | Service frequency (C41) |