<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></abstract>

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.

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

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

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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...

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

Published Online: Mar 17, 2016

Page range: 17 - 28

Received: Jun 17, 2015

Accepted: Oct 12, 2015

DOI: https://doi.org/10.1515/revecp-2016-0002

Keywords
Transport Economics, SSNIP test, Critical loss analysis, Consumer survey

© 2016 Eliška Kleinová, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Published Online: Mar 17, 2016

Page range: 17 - 28

Received: Jun 17, 2015

Accepted: Oct 12, 2015

DOI: https://doi.org/10.1515/revecp-2016-0002

KeywordsTransport Economics, SSNIP test, Critical loss analysis, Consumer survey

© 2016 Eliška Kleinová, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Transport Economics, SSNIP test, Critical loss analysis, Consumer survey