1 AIT Asian Institute of Technology

Market structure of the passenger vans in Bangkok

AuthorSupaporn Kaewko Leopairojna
Call NumberAIT Diss. no.TE-06-01
Subject(s)Transportation--Thailand--Bangkok--Passenger traffic

NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Technical Science in Transportation Engineering, School of Engineering and Technology
PublisherAsian Institute of Technology
Series StatementDissertation ; no. TE-06-01
AbstractThe passenger van services in Bangkok were initiated as informal public transport. Passengers preferred these services to conventional buses due to their speed, comfort and ease of access at affordable prices. The popularity caused conventional bus operators to judge the passenger vans as competitors who affected reduction of their passengers and revenues. Consequently, the government enforced passenger van regulations in 1999. Under the regulations, entry of the passenger vans and maximum prices are controlled. However, the regulations was not based on theoretical consideration and passenger van market has not been studied. This study aimed to identify market structure of the passenger van services in Bangkok based on information from the supply side, that is, the passenger van and a-c bus operators, and the demand side, that is, the passengers on the passenger vans and a-c buses. Competitions in the passenger van services were considered on two levels. On route level, competitors of a passenger van driver were other drivers operated on the same route. On corridor level, competitors of the passenger vans were a-c buses. To verify the competitions, three corridors were selected as case study areas. Questionnaire surveys with the passenger van drivers were conducted. Revealed preference (RP) and stated preference (SP) approaches were applied to find characteristics of the passenger van services. The results show that the drivers on the same route colluded to charge the same fare structures to get maximum profits and competition between the passenger vans and a-c buses was non-price competition since the operators competed in providing different type of services that were express with guaranteed seats (passenger vans) and slow without guaranteed seats but cheaper (a-c buses). For the passengers on the two modes, RP and SP approaches and conjoint analysis method were applied to find their characteristics, opinions and preferences. The results show that the respondents on the two modes were in the same attribute groups that were middle-income groups and had private vehicles in households but used public transport for commuting. They had similar opinions and preferences. Their major concerns in selecting modes were comfort, convenience and short travelling time. Fares were considered but not of importance. They considered the two modes as differentiated services. The a-c buses were for inexpensive short trips while the passenger vans were for express Jong trips with guaranteed seat. Market structure of the passenger van services was determined by comparing characteristics of the passenger van services obtained from the questionnaire surveys with characteristics of the basic market structures. On the route level, the passenger van market was an oligopoly market with implication of collusion. On the corridor level, the market was an oligopoly market with implication of product differentiation. The entry regulation caused disadvantages to the passengers mainly remaining of unlicensed passenger vans that the passengers were not protected in case of accidents. Therefore, deregulation of the passenger van entry while maintaining price and safety regulations was recommended. Measurement of benefits from the entry deregulation to stakeholders, which were the passengers, the drivers, the investors and related government agencies, showed that providing licenses to the existing unlicensed drivers and new qualified drivers would give more benefits to the stakeholders than maintaining the entry regulation or giving licenses only to the existing unlicensed drivers.
Year2006
Corresponding Series Added EntryAsian Institute of Technology. Dissertation ; no. TE-06-01
TypeDissertation
SchoolSchool of Engineering and Technology (SET)
DepartmentDepartment of Civil and Infrastucture Engineering (DCIE)
Academic Program/FoSTransportation Engineering (TE)
Chairperson(s)Hanaoka, Shinya;
Examination Committee(s)Kunnawee Kanitpong ;Perera, L. A. S. Ranjith ;Lee, Seungjae;
Scholarship Donor(s)The Japanese Government;
DegreeThesis (Ph.D.) - Asian Institute of Technology, 2006


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