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Entry deterrence due to brand proliferation: Empirical evidence from the German interurban bus industry
In 2016, the largest operator in the German interurban bus industry, Flixbus, acquired its major rival, Postbus. We study the effects of that takeover using route-level data covering more than 6,000 routes. We find that Flixbus, on average, provided a lower frequency of bus rides and slightly decrea...
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| Udgivet i: | MAGKS - Joint Discussion Paper Series in Economics (Band 31-2017) |
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| Autoren: | , , |
| Format: | Artikel |
| Sprog: | engelsk |
| Udgivet: |
Philipps-Universität Marburg
2017
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| Fag: | |
| Online adgang: | PDF-Volltext |
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| Summary: | In 2016, the largest operator in the German interurban bus industry, Flixbus, acquired its major rival, Postbus. We study the effects of that takeover using route-level data covering more than 6,000 routes. We find that Flixbus, on average, provided a lower frequency of bus rides and slightly decreased prices after the takeover. This indicates that Flixbus pursued a strategy of preemption: to decrease residual demand for Postbus, Flixbus offered a high number of bus rides. After the takeover, Flixbus decreased the supply of transportation services and lowered the prices to compensate the consumers for the resulting increase in inconvenience costs |
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| Fysisk beskrivelse: | 56 Seiten |
| ISSN: | 1867-3678 |
| DOI: | 10.17192/es2024.0541 |