The Use of a Consumer Survey to Determine the Relevant Market – Case Study for public transport between Prague and Most
17 mar 2016
O artykule
Data publikacji: 17 mar 2016
Zakres stron: 17 - 28
Otrzymano: 17 cze 2015
Przyjęty: 12 paź 2015
DOI: https://doi.org/10.1515/revecp-2016-0002
Słowa kluczowe
© 2016 Eliška Kleinová, published by De Gruyter Open
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 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.