Publication details
The Use of a Consumer Survey to Determine the Relevant Market – Case Study for public transport between Prague and Most
| Authors | |
|---|---|
| Year of publication | 2016 |
| Type | Article in Periodical |
| Magazine / Source | Národohospodářský obzor |
| MU Faculty or unit | |
| Citation | |
| Web | http://nho.econ.muni.cz/16-2016 |
| Doi | http://dx.doi.org/10.1515/revecp-2016-0002 |
| Field | Economy |
| Keywords | Transport Economics; SSNIP test; Critical loss analysis; Consumer survey |
| Description | 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. |