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  1. 1 Review of Economic Perspectives

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  1. 1 Kleinová E.

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  1. 1 2016

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

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Kleinová E.
Review of Economic Perspectives
|
2016
|
vol. 16
|
issue 1
17-28
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.
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