Orateur
Description
In today's context of increasing environmental consciousness, stricter regulations but also capacity constraints across different transport modes, and demand for smoother passenger experiences, optimizing and coordinating multimodal transport in Europe is vital for the overall effectiveness of the transport system, both now and in the future. Understanding the factors influencing passengers' transport choices is crucial. We examine the substitution patterns between air and rail travel for French city pairs where both options are available. We analyze the market share of various travel alternatives based on their service provider, quality, and pricing on the routes under study. Moreover, we assume price competition between service providers, given their ex-ante choice of quality and their marginal cost of production. The Bertrand-Nash equilibrium is derived from a structural model allowing to measure inter and intra-modal competition as well as marginal cost per service and operator. We closely examine the features of air and rail transport to gauge their impact on passengers' mode preferences. We can therefore conclude on the main efficient regulatory measures enabling the steering of passengers’ choices, increasing quality of services, or implementing taxes on kerosene for instance.
