01554159

Component

https://doi.org/10.3141/2512-08

This paper examines the market for motorcycle taxi services in Bangkok, Thailand, in terms of economic rent and the effects of such rent on fares. Three sources of monopoly rent in motorcycle taxi services are identified. Locational rent is attributed to the level of accessibility that is specific to the location of a motorcycle taxi stand. Such locations are limited in terms of accessibility, with few locations that can be substituted with another. The quota rent is arbitrarily created by rent-seeking activities, that is, by setting a quota on the number of operators in each location. Territorial rent is created by restricting the service area for each operator group. Depending on the behavior of the so-called influential people, the monopoly can be either enforced or eroded. A regression analysis of fare data provides evidence that supports the hypothesis of locational and territorial rents. Locational rent decreases as a motorcycle taxi stand is located farther away from a rail transit station. Motorcycle taxi groups with demarcated territories command a fare premium, which may indicate territorial rent. Some stands enjoy a degree of monopoly where there are limited substitute feeder transport modes; stands located near bus stops also command a fare premium because of accessibility. This situation implies that bus services do not compete with motorcycle taxis but provide complementary services. The additional economic rent created by new transit systems is unfairly captured by operator groups and influential people. It is suggested that a competitive market be created for motorcycle taxi services, with value-capture measures that are intended to create a more efficient and fairer feeder transport system.

01589161

15-2703

English

pp 66–72

2015

Transportation Research Record: Journal of the Transportation Research Board

9780309369343

Print

Figures (1) ; References (14) ; Tables (2)

Accessibility; Costs; Fares; Feeder services; Location; Market assessment; Monopoly; Motorcycles; Regression analysis; Rent; Taxi services

Bangkok (Thailand)

Economics; Passenger Transportation; Public Transportation; I10: Economics and Administration

TRIS, TRB, ATRI

Dec 30 2014 12:56PM

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