We analyze the differences between corner solution and survival models in estimating the marginal cost of track renewals. Both approaches describe the renewal process in intuitively similar ways but have several methodological distinctions. Using Swedish data for the 1999–2016 period, results suggest the median marginal costs per gross ton-km from corner solution and survival models are SEK 0.0066

This paper analyzes the flight-frequency choices of a monopoly airline serving a hub-and-spoke network with asymmetric demands. In the 3-city hub-and-spoke network, demand is allowed to differ across markets. Analysis is done separately for two distinct passenger types: those who assign zero cost to layovers, and those who assign a very high cost. Both cases result in a higher flight frequency on the

Transportation economists apply different labor supply models when examining transport pricing: (i) endogenous working hours; (ii) endogenous workdays; (iii) labor supply as a residual. We study whether the optimal level of transport taxes that changes the relative cost of labor supply margins is robust against the model applied. We find surprisingly strong differences in the level of optimal fuel

In this paper we study how the spatial arrangement of transit lines (lines structure) influences scale economies in public transport. First we show that the degree of scale economies (DSE) increases discretely whenever passenger volume induces a change in lines structure. The technical elements behind this are explained by using a new three-dimensional concept called directness, encompassing number

Following the decision of the European Court of Justice in 2002, which overruled its member countries’ Bilateral Air Services Agreements (BASAs), the EU has been negotiating Air Services Agreements as a block with third countries within the framework of its External Aviation policy. This paper explores whether routes governed by this policy have lower fares and higher service quality and load factors

We study entry deterrence in air transport markets with a full-service (FS) carrier (the incumbent) and a low-cost (LC) carrier (the potential entrant). We consider a vertically differentiated product model where airlines have different operating cost and different generalized prices so they compete in ticket prices and frequencies. Thus, more frequency allows airlines to increase ticket prices without

Proponents of the Mobility as a Service concept claim that subscriptions to alternative modes can effectively reduce car ownership and the adverse effects of underpriced car use. We test this hypothesis in a microeconomic model with endogenous mode choice as well as car and subscription ownership. The model contains congestible urban rail and car sharing options as substitutes of underpriced private