Title: Inter-Island modal competition: the case of Gran Canaria-Tenerife

Authors: Concepcion Roman, Juan Carlos Martin, Raquel Espino

Addresses: Department of Applied Economic Analysis, Edificio Departamental de CCEE y EE, Modulo D. Campus de Tafira, 35017 Las Palmas de Gran Canaria, Spain. ' Department of Applied Economic Analysis, Edificio Departamental de CCEE y EE, Modulo D. Campus de Tafira, 35017 Las Palmas de Gran Canaria, Spain. ' Department of Applied Economic Analysis, Edificio Departamental de CCEE y EE, Modulo D. Campus de Tafira, 35017 Las Palmas de Gran Canaria, Spain

Abstract: In this paper, we use discrete choice modelling to analyse inter-modal competition in the most important route within The Canary Islands (Spain). We estimate different Nested Logit (NL) models that allow us to know the main factors that determine modal choice among a set of three existing alternatives: plane and two fast ferries. We obtained passengers| Willingness To Pay (WTP) for improvements in the main level-of-service attributes. Direct demand elasticities for the different competing modes are also derived. The results of our analysis can be used as an interesting policy instrument for operators| managers and policy makers.

Keywords: inter-modal competition; revealed preferences; discrete choice modelling; willingness to pay; WTP; Canary Islands; ferries; airplanes; sea transport; air transport; Gran Canaria; Tenerife; passenger choice.

DOI: 10.1504/WRITR.2007.016272

World Review of Intermodal Transportation Research, 2007 Vol.1 No.3, pp.239 - 250

Published online: 13 Dec 2007 *

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