The effect of open access competition on average rail prices. The case of Milan - Ancona

Results show that the incumbent reduced economy class prices by about 15%. The newcomer is slightly cheaper for bookings well in advance of the departure date, but raises prices in the very last days before departure. Their fare strategy also changed after three months of operations, when they applied lower prices. Finally, we see that Trenitalia does not respond to NTV's prices, whereas the opposite is true, demonstrating that the newcomer is the price-taker in the short-run.