Deregulation of the Norwegian long distance express coach market

• Rapid growth followed by consolidation has taken place after de-regulation.
• We do not observe any negative link between patronage on rail and coach.
• PSO lines were introduced in direct competition with commercial coaches.
• Competition is mainly intermodal.

This paper offers new insight to the effects of long distance express coach deregulation in Norway, which formally happened gradually between 1998 and 2003. We study data over a period that spans from the years prior to deregulation and up to 2010. We document the degree of both competition and cooperation in the market, which has taken a particular form in Norway due to historical requirements on coach operations. We also document that the market has changed character as a consequence of intermodal competition, in particular with air traffic. Our paper documents the successful development of an often neglected public transport mode, which has the potential to make long distance passenger transport more efficient more sustainable, and with hardly any subsidy requirements.