The Use of a Consumer Survey to Determine the Relevant Market – Case Study for public transport between Prague and Most
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 pra...
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| Format: | Article |
| Language: | English |
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Sciendo
2016-03-01
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| Series: | Review of Economic Perspectives |
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| Online Access: | https://doi.org/10.1515/revecp-2016-0002 |
| Summary: | 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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| ISSN: | 1804-1663 |