The Use of a Consumer Survey to Determine the Relevant Market – Case Study for public transport between Prague and Most

• Authors: Eliška Kleinová
• Languages of publication: EN

Abstracts

EN

The aim of this paper is to define a relevant market in the passenger transportation industry for the route between Prague and Most. A rising number of bus companies operating on this particular market suggests competition pressures. On the basis of European Commission legislation and its common practice we apply a demand-side substitution analysis in the form of the so called SSNIP test. Data for the empirical analysis were collected by means of a customer survey, which captured reactions to a 10% increase in the price of purchased tickets. The survey outcomes were then used to calculate an own price elasticity of demand and to carry out a critical loss analysis in order to define the relevant market.

Keywords

EN

Transport Economics; SSNIP test; Critical loss analysis; Consumer survey; R40

• Publisher: Sciendo
• Journal: Review of Economic Perspectives
• Year: 2016
• Volume: 16
• Issue: 1
• Pages: 17-28

Dates

published

2016-03-01

received

2015-06-17

accepted

2015-10-12

online

2016-03-17

Contributors

author

Eliška Kleinová

• Department of Economics, Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic.

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Identifiers

DOI

10.1515/revecp-2016-0002