search query: @freeterm consumer surplus / total: 4
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| Author: | Clark, D.J. Jorgensen, F. Pedersen, P.A. |
| Title: | Strategic interactions between transport operations with several goals |
| Journal: | Journal of Transport Economics and Policy
2009 : SEP, VOL. 43: 3 p. 385-403 |
| Index terms: | transport economics transport interaction imperfect competition |
| Freeterms: | consumer surplus |
| Language: | eng |
| Abstract: | This paper analyses competition between transport firms that have goals extending beyond traditional profit maximisation, particularly maximising a weighted combination of profits and consumer surplus. Equilibrium solutions are calculated for the case of symmetric firms producing symmetrically differentiated services, then equilibrium prices, consumer surplus, and total surplus arising from collusion, Cournot and Bertrand competition are compared. The results are discussed on the perspective of the firms' pay-off functions, costs, and the degree of the services' substitutability or complementarity. |
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