Entry and competition in freight transport: How to best get your potatoes from Lyon to Turin

摘要: We analyze the expected eects of introducing a new product on market shares established and suppliers, consumer surplus. In particular, we apply equilibrium model presented by Ivaldi Vibes (2005) to alpine freight transport market. The object our analysis is planned introduction 55km rail tunnel creating link between Lyon Turin. framework shippers choose mode an path send goods from given origin destination, while carriers strategically set prices for dierentiated products they supply. Deriving are able simulate entry this quality‐improved test its competitive viability within Based collected data several simulations, show weakness prospective Italian‐French which far yielding modal shift that hoped for.