Factors influencing prices and frequencies in the interurban bus market: Evidence from Europe

Abstract

We analyze the determinants of prices and frequencies in the interurban bus services (IBS) market. Drawing on data collected from a sample of routes in six large European countries, we find that intramodal competition is based on frequencies while intermodal competition is based on prices. Furthermore, we provide evidence of the regressive nature of the IBS in Europe by showing that routes with low-income endpoints face higher prices. We also find significant price differences between countries, which can be attributed to differences in their respective regulatory systems.