Rhônexpress ( French pronunciation: [ʁonɛkspʁɛs] ) is an express tram-train service which links Lyon , France, with its main airport, Lyon–Saint-Exupéry Airport , and the TGV railway station located there. At its opening in 2010, it became one of the most expensive airport-to-city lines in Europe per kilometre.
105-465: The route is 23 kilometres (14 mi) long, and served by six tram-train sets, built by Swiss manufacturer Stadler Rail . The route from the airport to the city's business center at Part-Dieu Villette ( Lyon-Part-Dieu railway station ) by way of Vaulx-en-Velin – La Soie (for transfer to Metro Line A ) and Meyzieu takes roughly half an hour. Services run every 15–30 minutes. The project included building 8.5 kilometres (5.3 mi) of new tracks, while
210-405: A " de jure monopoly") is a form of coercive monopoly , in which a government grants exclusive privilege to a private individual or company to be the sole provider of a commodity. Monopoly may be granted explicitly, as when potential competitors are excluded from the market by a specific law , or implicitly, such as when the requirements of an administrative regulation can only be fulfilled by
315-509: A PC market are price takers. The price is set by the interaction of demand and supply at the market or aggregate level. Individual companies simply take the price determined by the market and produce that quantity of output that maximizes the company's profits. If a PC company attempted to increase prices above the market level all its customers would abandon the company and purchase at the market price from other companies. A monopoly has considerable although not unlimited market power. A monopoly has
420-739: A boarding pass before boarding an airplane. Most travelers assume that this practice is strictly a matter of security. However, a primary purpose in requesting photographic identification is to confirm that the ticket purchaser is the person about to board the airplane and not someone who has repurchased the ticket from a discount buyer. The inability to prevent resale is the largest obstacle to successful price discrimination. Companies have, however, developed numerous methods to prevent resale. For example, universities require that students show identification before entering sporting events. Governments may make it illegal to resell tickets or products. In Boston, Red Sox baseball tickets can only be resold legally to
525-598: A company cannot charge more than the market price. Any market structure characterized by a downward sloping demand curve has market power – monopoly, monopolistic competition and oligopoly. The only market structure that has no market power is perfect competition. A company wishing to practice price discrimination must be able to prevent middlemen or brokers from acquiring the consumer surplus for themselves. The company accomplishes this by preventing or limiting resale. Many methods are used to prevent resale. For instance, persons are required to show photographic identification and
630-426: A consumer's tax return has information that can be used to charge customers based on an estimate of their ability to pay. In second degree price discrimination or quantity discrimination customers are charged different prices based on how much they buy. There is a single price schedule for all consumers but the prices vary depending on the quantity of the good bought. The theory of second degree price discrimination
735-438: A consumer's willingness to pay is rarely available. Sellers tend to rely on secondary information such as where a person lives (postal codes); for example, catalog retailers can use mail high-priced catalogs to high-income postal codes. First degree price discrimination most frequently occurs in regard to professional services or in transactions involving direct buyer-seller negotiations. For example, an accountant who has prepared
840-549: A customer's willingness to buy a good is difficult. Asking consumers directly is fruitless: consumers do not know, and to the extent they do they are reluctant to share that information with marketers. The two main methods for determining willingness to buy are observation of personal characteristics and consumer actions. As noted information about where a person lives (postal codes), how the person dresses, what kind of car he or she drives, occupation, and income and spending patterns can be helpful in classifying. The price of monopoly
945-606: A decrease in fares; David Kimelfeld, President of the Lyon Metropole, declared that: "We can’t sit back and let it continue like this". Reportedly, if a compromise cannot be found, the existing agreement that the Rhônexpress is operated under may be terminated. Rhônexpress uses the line T3 infrastructure built by SYTRAL from Lyon to Meyzieu (a hub for commuters with a large surface parking lot available). From there, new tracks were built specifically for Rhônexpress all
1050-492: A different price. Third degree price discrimination is the most prevalent type. There are three conditions that must be present for a company to engage in successful price discrimination. First, the company must have market power. Second, the company must be able to sort customers according to their willingness to pay for the good. Third, the firm must be able to prevent resell. A company must have some degree of market power to practice price discrimination. Without market power
1155-537: A dominant position or a monopoly in a market is often not illegal in itself; however, certain categories of behavior can be considered abusive and therefore incur legal sanctions when business is dominant. A government-granted monopoly or legal monopoly , by contrast, is sanctioned by the state, often to provide an incentive to invest in a risky venture or enrich a domestic interest group . Patents , copyrights , and trademarks are sometimes used as examples of government-granted monopolies. The government may also reserve
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#17327802222971260-400: A few entities have market power and therefore interact with their customers (monopoly or oligopoly), or suppliers (monopsony) in ways that distort the market. Monopolies can be formed by mergers and integrations, form naturally , or be established by a government. In many jurisdictions, competition laws restrict monopolies due to government concerns over potential adverse effects. Holding
1365-424: A given product or service. If there is a single seller in a certain market and there are no close substitutes for the product, then the market structure is that of a "pure monopoly". Sometimes, there are many sellers in an industry or there exist many close substitutes for the goods being produced, but nevertheless, companies retain some market power. This is termed "monopolistic competition", whereas in an oligopoly ,
1470-409: A high rate of return or monopoly prices and might represent risk premiums . Monopolies derive their market power from barriers to entry – circumstances that prevent or greatly impede a potential competitor's ability to compete in a market. There are three major types of barriers to entry: economic, legal, and deliberate. In addition to barriers to entry and competition, barriers to exit may be
1575-433: A higher price than P ∗ {\displaystyle P^{*}} and those who will not pay P ∗ {\displaystyle P^{*}} but would buy at a lower price. A price discrimination strategy is to charge less price sensitive buyers a higher price and the more price sensitive buyers a lower price. Thus additional revenue is generated from two sources. The basic problem
1680-570: A large manufacturing facility in Fanipaĺ , Belarus. Following the disputed 2020 Belarusian presidential elections and the 2022 Russian invasion of Ukraine , the company came under pressure to reduce its exposure in those countries. By June 2022, electronic parts used to assemble rail equipment are no longer deliverable to Fanipaĺ due to international sanctions against Belarus following the forced diversion of Ryanair Flight 4978 . In response, Stadler moved equipment and personnel to Poland, Switzerland and
1785-607: A major beneficiary of customer dissatisfaction with the dominant market competitors, particularly in terms of delivery and certification issues. In 2014, Stadler Rail announced the formation of a joint venture with Azerbaijan -based company International Railway Distribution LLC to manufacture rolling stock in the nation. One month prior, Stadler had received a SFr120 million contract to produce 30 sleeper and dining cars. Rolling stock originally intended for Russia has also been resold to Azerbaijan and neighbouring Georgia . Stadler Rail had traditionally avoided major involvement with
1890-515: A market and what does not are relevant distinctions to make in economic analysis. In a general equilibrium context, a good is a specific concept including geographical and time-related characteristics. Most studies of market structure relax a little their definition of a good, allowing for more flexibility in the identification of substitute goods. A monopoly has at least one of these five characteristics: Market power can be estimated with Lerner index . High profit margins might not correspond to
1995-416: A maximum value then continuously decreases until total revenue is again zero. Total revenue has its maximum value when the slope of the total revenue function is zero. The slope of the total revenue function is marginal revenue. So the revenue maximizing quantity and price occur when MR = 0 {\displaystyle {\text{MR}}=0} . For example, assume that the monopoly's demand function
2100-473: A monopolist to increase its profit by charging higher prices for identical goods to those who are willing or able to pay more. For example, most economic textbooks cost more in the United States than in developing countries like Ethiopia . In this case, the publisher is using its government-granted copyright monopoly to price discriminate between the generally wealthier American economics students and
2205-454: A monopoly is that the monopoly has a downward-sloping demand curve rather than the "perceived" perfectly elastic curve of the PC company. Practically all the variations mentioned above relate to this fact. If there is a downward-sloping demand curve then by necessity there is a distinct marginal revenue curve. The implications of this fact are best made manifest with a linear demand curve. Assume that
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#17327802222972310-509: A monopoly. Often, a natural monopoly is the outcome of an initial rivalry between several competitors. An early market entrant that takes advantage of the cost structure and can expand rapidly can exclude smaller companies from entering and can drive or buy out other companies. A natural monopoly suffers from the same inefficiencies as any other monopoly. Left to its own devices, a profit-seeking natural monopoly will produce where marginal revenue equals marginal costs. Regulation of natural monopolies
2415-447: A more elastic demand for movies than do young adults because they generally have more free time. Thus theaters will offer discount tickets to seniors. Assume that by a uniform pricing system the monopolist would sell five units at a price of $ 10 per unit. Assume that his marginal cost is $ 5 per unit. Total revenue would be $ 50, total costs would be $ 25 and profits would be $ 25. If the monopolist practiced price discrimination he would sell
2520-496: A more price inelastic demand and a relatively lesser price to the group with a more elastic demand. Examples of third degree price discrimination abound. Airlines charge higher prices to business travelers than to vacation travelers. The reasoning is that the demand curve for a vacation traveler is relatively elastic while the demand curve for a business traveler is relatively inelastic. Any determinant of price elasticity of demand can be used to segment markets. For example, seniors have
2625-421: A perfectly elastic demand curve meaning that total revenue is proportional to output. Thus the total revenue curve for a competitive company is a ray with a slope equal to the market price. A competitive company can sell all the output it desires at the market price. For a monopoly to increase sales it must reduce price. Thus the total revenue curve for a monopoly is a parabola that begins at the origin and reaches
2730-477: A price increase, price elasticity tends to increase, and in the optimum case above it will be greater than one for most customers. A company maximizes profit by selling where marginal revenue equals marginal cost. A company that does not engage in price discrimination will charge the profit maximizing price, P ∗ {\displaystyle P^{*}} , to all its customers. In such circumstances there are customers who would be willing to pay
2835-472: A range of standard modular vehicles, including: Since purchasing Vossloh España in 2016, Stadler Rail have additionally manufactured the following former Vossloh designs: Stadler has also built a number of custom vehicles for specific customers, in some cases including elements of their standard designs. These include: Monopoly A monopoly (from Greek μόνος , mónos , 'single, alone' and πωλεῖν , pōleîn , 'to sell')
2940-545: A relatively small rolling stock manufacturer even through to the 1990s; by the mid-1990s, Stadler reportedly had only 100 employees. Around 1984, Stadler Rail decided to embark on the manufacture of passenger rolling stock for the first time. In 1987, Peter Spuhler , an in-law relative of the Stadler family through his marriage to one of Ernst Stadler's granddaughters, joined the company and subsequently took over as CEO from Irma Stadler in 1989. Spuhler then decided to expand
3045-533: A serious competitor in several categories to traditional major rolling stock companies, such as Alstom and Siemens , and has successfully secured several major orders from the incumbent train operating companies of several nations. In 1999, Stadler Rail took a 67% shareholding in a joint venture with Adtranz to manufacture the Regio-Shuttle RS1 . However, following Adtranz's acquisition by Bombardier in 2001, European Union regulators insisted on
3150-424: A single agent or entrepreneur, the optimal decision is to equate the marginal cost and marginal revenue of production. Nonetheless, a pure monopoly can – unlike a competitive company – alter the market price for its own convenience: a decrease of production results in a higher price. In the economics' jargon, it is said that pure monopolies have "a downward-sloping demand". An important consequence of such behaviour
3255-482: A source of market power. Barriers to exit are market conditions that make it difficult or expensive for a company to end its involvement with a market. High liquidation costs are a primary barrier to exiting. Market exit and shutdown are sometimes separate events. The decision of whether to shut down or operate is not affected by exit barriers. A company will shut down if the price falls below minimum average variable costs. While monopoly and perfect competition represent
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3360-402: A substitute. Contrary to common misconception , monopolists do not try to sell items for the highest possible price, nor do they try to maximize profit per unit, but rather they try to maximize total profit. A natural monopoly is an organization that experiences increasing returns to scale over the relevant range of output and relatively high fixed costs. A natural monopoly occurs where
3465-533: A tender, taking into account the technical criteria (speed up to 100 km/h [62 mph]), durability, security and compatibility with the common use of the T3 line infrastructure, economics (capacity adapted to the traffic and prospects for their development) as well as comfort and aesthetics. The interior and exterior designs of the Stadler Tango were created by RCP Design Global , who had already designed
3570-406: Is P = 50 − 2 Q {\displaystyle P=50-2Q} . The total revenue function would be TR = 50 Q − 2 Q 2 {\displaystyle {\text{TR}}=50Q-2Q^{2}} and marginal revenue would be 50 − 4 Q {\displaystyle 50-4Q} . Setting marginal revenue equal to zero we have So
3675-618: Is a Swiss manufacturer of railway rolling stock , with an original emphasis on regional train multiple units and trams , but moving also into underground , high speed , intercity and sleeper trains . It also produces niche products, such as being one of the last European manufacturers of rack railway rolling stock. Stadler Rail is headquartered at its place of origin in Bussnang , Switzerland. Stadler Rail employed 13,900 employees by 2023. The company consolidates fifty subsidiaries in 23 countries including Algeria , Germany , Italy ,
3780-502: Is a consumer is willing to buy only a certain quantity of a good at a given price. Companies know that consumer's willingness to buy decreases as more units are purchased. The task for the seller is to identify these price points and to reduce the price once one is reached in the hope that a reduced price will trigger additional purchases from the consumer. For example, sell in unit blocks rather than individual units. In third degree price discrimination or multi-market price discrimination
3885-404: Is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic competition to produce a particular thing, a lack of viable substitute goods , and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit . The verb monopolise or monopolize refers to
3990-400: Is a theoretical construct, advances in information technology and micromarketing may bring it closer to the realm of possibility. Partial price discrimination can cause some customers who are inappropriately pooled with high price customers to be excluded from the market. For example, a poor student in the U.S. might be excluded from purchasing an economics textbook at the U.S. price, which
4095-441: Is also managed by a consortium, headed by VINCI, which was awarded the concession to operate it for a fixed period of 30 years. During 2009, much of the tramway's infrastructure was built, delivery of the rolling stock also took place around this timeframe. The line is electrified; to provide this electrification along the new section of line, a pair of substations were built to power the newly installed overhead catenary wire. This
4200-681: Is defined by the total gains from trade, the monopoly setting is less efficient than perfect competition. It is often argued that monopolies tend to become less efficient and less innovative over time, becoming "complacent", because they do not have to be efficient or innovative to compete in the marketplace. Sometimes this very loss of psychological efficiency can increase a potential competitor's value enough to overcome market entry barriers, or provide incentive for research and investment into new alternatives. The theory of contestable markets argues that in some circumstances (private) monopolies are forced to behave as if there were competition because of
4305-460: Is energised at 750V DC, suitable for operating the tram-trains at speeds of up to 100 km/h (62 mph). The line's support infrastructure includes a dedicated operations centre, comprising offices and maintenance facilities, along with storage sidings for the rolling stock, a sand replenishment station and vehicle cleaning facilities. Both day-to-day operations of the tramway and all maintenance activities associated with it are responsibilities of
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4410-417: Is important information for one to remember when considering the monopoly model diagram (and its associated conclusions) displayed here. The result that monopoly prices are higher, and production output lesser, than a competitive company follow from a requirement that the monopoly not charge different prices for different customers. That is, the monopoly is restricted from engaging in price discrimination (this
4515-401: Is known as the "revolution in monopoly theory". A monopolist can extract only one premium, and getting into complementary markets does not pay. That is, the total profits a monopolist could earn if it sought to leverage its monopoly in one market by monopolizing a complementary market are equal to the extra profits it could earn anyway by charging more for the monopoly product itself. However,
4620-400: Is not perfect. Regulators must estimate average costs. Companies have a reduced incentive to lower costs. Regulation of this type has not been limited to natural monopolies. Average-cost pricing does also have some disadvantages. By setting price equal to the intersection of the demand curve and the average total cost curve, the firm's output is allocatively inefficient as the price is less than
4725-400: Is problematic. Fragmenting such monopolies is by definition inefficient. The most frequently used methods dealing with natural monopolies are government regulations and public ownership. Government regulation generally consists of regulatory commissions charged with the principal duty of setting prices. Natural monopolies are synonymous with what is called "single-unit enterprise", a term which
4830-448: Is termed first degree price discrimination , such that all customers are charged the same amount). If the monopoly were permitted to charge individualised prices (this is termed third degree price discrimination ), the quantity produced, and the price charged to the marginal customer, would be identical to that of a competitive company, thus eliminating the deadweight loss ; however, all gains from trade (social welfare) would accrue to
4935-621: Is that typically a monopoly selects a higher price and lesser quantity of output than a price-taking company; again, less is available at a higher price. A monopoly chooses that price that maximizes the difference between total revenue and total cost. The basic markup rule (as measured by the Lerner index ) can be expressed as P − M C P = − 1 E d {\displaystyle {\frac {P-MC}{P}}={\frac {-1}{E_{d}}}} , where E d {\displaystyle E_{d}}
5040-560: Is the only market form in which price discrimination would be impossible (a perfectly competitive company has a perfectly elastic demand curve and has no market power). There are three forms of price discrimination. First degree price discrimination charges each consumer the maximum price the consumer is willing to pay. Second degree price discrimination involves quantity discounts. Third degree price discrimination involves grouping consumers according to willingness to pay as measured by their price elasticities of demand and charging each group
5145-535: Is the price elasticity of demand the firm faces. The markup rules indicate that the ratio between profit margin and the price is inversely proportional to the price elasticity of demand. The implication of the rule is that the more elastic the demand for the product the less pricing power the monopoly has. Market power is the ability to increase the product's price above marginal cost without losing all customers. Perfectly competitive (PC) companies have zero market power when it comes to setting prices. All companies of
5250-517: Is to identify customers by their willingness to pay. The purpose of price discrimination is to transfer consumer surplus to the producer. Consumer surplus is the difference between the value of a good to a consumer and the price the consumer must pay in the market to purchase it. Price discrimination is not limited to monopolies. Market power is a company's ability to increase prices without losing all its customers. Any company that has market power can engage in price discrimination. Perfect competition
5355-441: Is upon every occasion the highest which can be got. The natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion indeed, but for any considerable time together. The one is upon every occasion the highest which can be squeezed out of the buyers, or which it is supposed they will consent to give; the other is the lowest which the sellers can commonly afford to take, and at
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#17327802222975460-629: The Caisse des dépôts et consignations . It opened on 9 August 2010. During February 2001, the General Council of the Rhone and SYTRAL, the urban transport authority for Lyon metropolitan area, announced their intentions to introduce a double-deck streetcar service that would run between Lyon Part-Dieu, Meyzieu ZI and Lyon Saint Exupery. Upon completion, it would become the only public transportation system between Lyon and Saint-Exupéry. SYTRAL oversaw
5565-1073: The Netherlands , Austria , Poland , Switzerland , Spain , Czech Republic , Hungary , Belarus and the United States , and upcoming joint ventures with INKA in Indonesia and Medha Servo Drives in India . Stadler Rail employed approximately 6,100 employees by 2012, including 2,750 in Switzerland, 1,200 in Germany, 1,000 in Belarus, 400 in Hungary and 400 in Poland. By 2023, this had increased to 13,900 employees. Stadler Rail traces its origins back to an engineering office established by Ernst Stadler (1908–1981) in 1942. Three years later,
5670-427: The process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices, which is associated with unfair price raises . Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have
5775-508: The British railway customer base, which it has claimed was due to the unfavourable complexity of the regulatory environment. However, in 2017, management decided to embark on a decisive push into Britain, both to acquire market share amongst its rail operators and to establish new manufacturing and servicing facilities. It quickly secured a £610 million order from Abellio Greater Anglia for its FLIRT family, leading to 378 vehicles conforming to
5880-517: The UK's restrictive loading gauge that were built in Bussnang . Further orders in the UK market have included Glasgow Subway 's order for 17 underground trains, operating via an automated driverless system, it is a first for Stadler. Another major order came from Merseytravel for bespoke electric trains for Liverpool's Merseyrail commuter rail system. It has also supplied trains and tram-trains to Transport for Wales Rail . In April 2019, Stadler Rail
5985-552: The US to make up for that loss. The board of directors decided to keep the site and stressed that the company has to follow supranational decisions by international organisations such as the OECD, UN and EU but their commitment is towards the people working at the site, stating that Stadler "serves the public not dictators". The subsidiaries OOO Stadler (Moskau) and Stadler Reinickendorf (Berlin) were liquidated in 2022. Stadler markets
6090-655: The United States, Algeria and Azerbaijan . To facilitate an expanded order book and wider customer base, the company has rapidly expanded its production capabilities. To serve the Central and Eastern European market alone, during 2005, a new assembly plant was built in Hungary , while another was completed in Poland in the following year; six years later, a third manufacturing site was established in Belarus . By late 2019,
6195-771: The United States, the Middle East and the North African regions. The company has also grown via numerous acquisitions, including the Swiss company Winpro AG based in Winterthur in 2005, Voith Rail Services of the Netherlands in 2013, and Vossloh Rail Vehicles España S.A. of Valencia during 2015. They have been integrated into the wider Stadler Rail organisation, broadening the range of products and services on offer. For many years, Peter Spuhler has served as
6300-403: The average cost of production "declines throughout the relevant range of product demand". The relevant range of product demand is where the average cost curve is below the demand curve. When this situation occurs, it is always more efficient for one large company to supply the market than multiple smaller companies; in fact, absent government intervention in such markets, will naturally evolve into
6405-547: The business via the launch of new products, as well as the acquisition of two other Swiss factories that built specialist rail vehicles for rack-and-pinion and narrow gauge railways. Stadler Rail experienced a considerable uptick in business during the latter years of 1990s. Its customer base continued to expand year after year over the following two decades to become one of the fastest growing and most innovative train manufacturing companies operating in Europe. Stadler Rail has become
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#17327802222976510-467: The case that at the profit-maximizing quantity MR and MC are less than price, which further implies that a monopoly produces less quantity at a higher price than if the market were perfectly competitive. The fact that a monopoly has a downward-sloping demand curve means that the relationship between total revenue and output for a monopoly is much different from that of competitive companies. Total revenue equals price times quantity. A competitive company has
6615-558: The companies interact strategically. In general, the main results from this theory compare the price-fixing methods across market structures, analyze the effect of a certain structure on welfare, and vary technological or demand assumptions in order to assess the consequences for an abstract model of society. Most economic textbooks follow the practice of carefully explaining the "perfect competition" model, mainly because this helps to understand departures from it (the so-called "imperfect competition" models). The boundaries of what constitutes
6720-637: The company began to manufacture its first locomotives, building both battery-electric and diesel types. Throughout the majority of Stadler Rail's existence, it operated as a relatively small family-owned business entirely based in Switzerland that traditionally focused on manufacturing highly customised rail vehicles for its clients. The customer base were typically within relatively niche markets, such as narrow gauge and mountain railway operators, rather than those operating conventional mainline railways. After Ernst Stadler died in 1981, his second wife, Irma (c. 1923–2020), took over as CEO. Stadler Rail remained
6825-554: The company's Variobahn trams, while Stadler Rail received its first contract for underground trains during 2015. In December 2015, the firm’s had a huge order via a joint venture with Siemens Mobility for up to 1,380 vehicles for Berlin 's S-Bahn , the last of which are to be delivered by 2023. During 2019, Stadler Rail was reportedly making efforts to capitalise on smaller operators, driven by trends towards regionalisation and open-access operation , to secure business for its railcars, light rail vehicles and multiple units. Stadler has
6930-478: The company's chief executive officer (CEO), as well as holding a major stake in the business. According to Peter Jenelten, Stadler Rail's Executive Vice-President for Marketing and Sales, has credited the business' relatively lean structure as having enabled very rapid decision-making and reducing product's time to market, which in turn has been an important selling point for its customers. Railway industry periodical Rail Magazine has claimed that Stadler Rail has been
7035-504: The consortium. Trial operations of the new line occurred during February 2010 while commercial operations started in August of that year. Since launch, the trams have been typically run at a 15-minute interval at peak hours, which fall between 6am and 9pm. A reduced service level runs every 30 minutes between 5am and 6am, as well as between 9pm and midnight. The consortium has reportedly been allocated funds to acquire additional tram-trains in
7140-655: The construction of the initial line, commonly referred to as the T3 Links , which ran between Lyon Part-Dieu and Meyzieu ZI; its commissioning in December 2006 represented a major milestone for the project. During January 2007, a concession contract covering the second line of the RhônExpress was signed by both the General Council Chairman and RhônExpress consortium, the latter being responsible for
7245-616: The divestiture of the regional and tram product lines. As a consequence, Stadler Rail took 100% ownership of the Pankow factory in Berlin , becoming its first manufacturing base in Germany, that same year. Production of the RS1 has continued, becoming the market leading tram in the nation. Perhaps the company's most successful product has been the FLIRT ( Fast Light Innovative Regional Train ) family,
7350-414: The extremes of market structures there is some similarity. The cost functions are the same. Both monopolies and perfectly competitive (PC) companies minimize cost and maximize profit. The shutdown decisions are the same. Both are assumed to have perfectly competitive factors markets. There are distinctions; some of the most important are as follows: The most significant distinction between a PC company and
7455-409: The firm reportedly employed in excess of 7,000 employees at various locations spread across 20 countries. Each year, hundreds of rail vehicles, including trams , locomotives and coaches, are completed by the firm. In addition to its manufacturing efforts, considerable business is derived from contracted maintenance and refurbishment programmes, which Stadler Rail provides to operators throughout Europe,
7560-407: The first unit for $ 17 the second unit for $ 14 and so on which is listed in the table below. Total revenue would be $ 55, his total cost would be $ 25 and his profit would be $ 30. Several things are worth noting. The monopolist acquires all the consumer surplus and eliminates practically all the deadweight loss because he is willing to sell to anyone who is willing to pay at least the marginal cost. Thus
7665-400: The form of price control is necessary as it helped efficient market. To reduce prices and increase output, regulators often use average cost pricing. By average cost pricing, the price and quantity are determined by the intersection of the average cost curve and the demand curve. This pricing scheme eliminates any positive economic profits since price equals average cost. Average-cost pricing
7770-422: The full implementation of the project, including design, financing, construction, and maintenance activities. This new link between downtown Lyon and its airport was developed under a public-private partnership (PPP). Its estimated cost was stated to be €120m; it was financed by the consortium through various means, €40m was received through several grants , another €62m came through borrowing by RhônExpress, while
7875-425: The future. In anticipation of the future growth in passenger numbers, all of the stations were constructed to accommodate double trains if required. By early 2019, the Rhônexpress had reportedly carried in excess of 10 million passengers since its inauguration nine years prior; during 2018 alone, it was recorded that over 1.5 million passengers had used the line, an 8.6 percent increase from the previous year. However,
7980-429: The generally poorer Ethiopian economics students. Similarly, most patented medications cost more in the U.S. than in other countries with a (presumed) poorer customer base. Typically, a high general price is listed, and various market segments get varying discounts. This is an example of framing to make the process of charging some people higher prices more socially acceptable. Perfect price discrimination would allow
8085-472: The ground level or via provided elevators . Further accessibility measures included the presence of braille signage indicating levels and locations. The information terminals that provide live train schedules include periodic audio announcements for passenger convenience. The six Tango 12 tram-train sets were built by Stadler Rail at its factory in Wilhelmsruh, Berlin . Rolling stock was chosen after
8190-468: The inverse demand curve is of the form x = a − b y {\displaystyle x=a-by} . Then the total revenue curve is TR = a y − b y 2 {\displaystyle {\text{TR}}=ay-by^{2}} and the marginal revenue curve is thus MR = a − 2 b y {\displaystyle {\text{MR}}=a-2by} . From this several things are evident. First,
8295-466: The marginal cost (which is the output quantity for a perfectly competitive and allocatively efficient market). In 1848, J.S. Mill was the first individual to describe monopolies with the adjective "natural". He used it interchangeably with "practical". At the time, Mill gave the following examples of natural or practical monopolies: gas supply, water supply, roads, canals, and railways. In his Social Economics , Friedrich von Wieser demonstrated his view of
8400-587: The marginal revenue curve has the same x {\displaystyle x} -intercept as the inverse demand curve. Second, the slope of the marginal revenue curve is twice that of the inverse demand curve. What is not quite so evident is that the marginal revenue curve is below the inverse demand curve at all points ( y ≥ 0 {\displaystyle y\geq 0} ). Since all companies maximise profits by equating MR {\displaystyle {\text{MR}}} and MC {\displaystyle {\text{MC}}} it must be
8505-401: The monopolist and none to the consumer. In essence, every consumer would be indifferent between going completely without the product or service and being able to purchase it from the monopolist. As long as the price elasticity of demand for most customers is less than one in absolute value , it is advantageous for a company to increase its prices: it receives more money for fewer goods. With
8610-445: The monopolist to charge each customer the exact maximum amount they would be willing to pay. This would allow the monopolist to extract all the consumer surplus of the market. A domestic example would be the cost of airplane flights in relation to their takeoff time; the closer they are to flight, the higher the plane tickets will cost, discriminating against late planners and often business flyers. While such perfect price discrimination
8715-402: The one monopoly profit theorem is not true if customers in the monopoly good are stranded or poorly informed, or if the tied good has high fixed costs. A pure monopoly has the same economic rationality of perfectly competitive companies, i.e. to optimise a profit function given some constraints. By the assumptions of increasing marginal costs, exogenous inputs' prices, and control concentrated on
8820-508: The postal service as a natural monopoly: "In the face of [such] single-unit administration, the principle of competition becomes utterly abortive. The parallel network of another postal organization, beside the one already functioning, would be economically absurd; enormous amounts of money for plant and management would have to be expended for no purpose whatever." Overall, most monopolies are man-made monopolies, or unnatural monopolies, not natural ones. A government-granted monopoly (also called
8925-445: The power to raise prices in a small industry (or market). A monopoly may also have monopsony control of a sector of a market. A monopsony is a market situation in which there is only one buyer. Likewise, a monopoly should be distinguished from a cartel (a form of oligopoly), in which several providers act together to coordinate services, prices or sale of goods. Monopolies, monopsonies and oligopolies are all situations in which one or
9030-426: The power to set prices or quantities although not both. A monopoly is a price maker. The monopoly is the market and prices are set by the monopolist based on their circumstances and not the interaction of demand and supply. The two primary factors determining monopoly market power are the company's demand curve and its cost structure. Market power is the ability to affect the terms and conditions of exchange so that
9135-455: The price discrimination promotes efficiency. Secondly, by the pricing scheme price = average revenue and equals marginal revenue. That is the monopolist behaving like a perfectly competitive company. Thirdly, the discriminating monopolist produces a larger quantity than the monopolist operating by a uniform pricing scheme. Successful price discrimination requires that companies separate consumers according to their willingness to buy. Determining
9240-403: The price of a product is set by a single company (price is not imposed by the market as in perfect competition). Although a monopoly's market power is great it is still limited by the demand side of the market. A monopoly has a negatively sloped demand curve, not a perfectly inelastic curve. Consequently, any price increase will result in the loss of some customers. Price discrimination allows
9345-453: The product or service less than its price, monopoly pricing creates a deadweight loss referring to potential gains that went neither to the monopolist nor to consumers. Deadweight loss is the cost to society because it is inefficient. Given the presence of this deadweight loss, the combined surplus (or wealth) for the monopolist and consumers is necessarily less than the total surplus obtained by consumers by perfect competition. Where efficiency
9450-485: The range includes highly diverse configurations to suit different needs, from smaller regional units to luxurious intercity trainsets, as well as broad gauge versions for Finland and former Soviet Union nations. During 2004, Stadler Rail delivered the first trainset to the Swiss Federal Railways . By 2019, in excess of 1,400 FLIRTs have been ordered by operators in 16 countries spread across Europe,
9555-594: The remainder of the route runs along the existing T3 tram line, on which passing tracks were built in some stations to allow express service. The service is independently run and is not a part of the TCL system, although it appears on TCL maps. The Conseil général of the Rhône franchised the operation of this line for 30 years to Rhônexpress, a consortium including Vinci SA (28.2%), Veolia Transport (28.2%), Vossloh Infrastructure Service (4.2%), Cegelec Centre Est (2.8%) and
9660-560: The remainder was contributed by its shareholders; all debt is to be repaid with the support of the Department, which provides an annual retainer to the consortium. During July 2008, the tramway was declared to be a public utility; construction work commenced three months later. Both design and construction were managed by a variety of companies, including VINCI, Eurovia Railway Works (ETF), Cegelec Centre Est, Campenon Bernard Management, South East EJL and Roiret Transport. The completed line
9765-490: The revenue maximizing quantity for the monopoly is 12.5 units and the revenue-maximizing price is 25. A company with a monopoly does not experience price pressure from competitors, although it may experience pricing pressure from potential competition. If a company increases prices too much, then others may enter the market if they are able to provide the same good, or a substitute, at a lesser price. The idea that monopolies in markets with easy entry need not be regulated against
9870-412: The risk of losing their monopoly to new entrants. This is likely to happen when a market's barriers to entry are low. It might also be because of the availability in the longer term of substitutes in other markets. For example, a canal monopoly, while worth a great deal during the late 18th century United Kingdom, was worth much less during the late 19th century because of the introduction of railways as
9975-445: The same time continue their business. ...Monopoly, besides, is a great enemy to good management. – Adam Smith (1776), The Wealth of Nations According to the standard model, in which a monopolist sets a single price for all consumers, the monopolist will sell a lesser quantity of goods at a higher price than would companies by perfect competition . Because the monopolist ultimately forgoes transactions with consumers who value
10080-406: The seller divides the consumers into different groups according to their willingness to pay as measured by their price elasticity of demand. Each group of consumers effectively becomes a separate market with its own demand curve and marginal revenue curve. The firm then attempts to maximize profits in each segment by equating MR and MC, Generally the company charges a higher price to the group with
10185-648: The student may have been able to purchase at the Ethiopian price. Similarly, a wealthy student in Ethiopia may be able to or willing to buy at the U.S. price, though naturally would hide such a fact from the monopolist so as to pay the reduced third world price. These are deadweight losses and decrease a monopolist's profits. Deadweight loss is considered detrimental to society and market participation. As such, monopolists have substantial economic interest in improving their market information and market segmenting . There
10290-430: The study of management structures, which directly concerns normative aspects of economic competition, and provides the basis for topics such as industrial organization and economics of regulation . There are four basic types of market structures in traditional economic analysis: perfect competition , monopolistic competition , oligopoly and monopoly. A monopoly is a structure in which a single supplier produces and sells
10395-402: The system has been criticised for its high prices, as well as for being awarded contractual rights for a monopoly along its route, the latter having been subject to legal challenges. During the 2010s, multiple petitions have been organised, calling for a reduction in the fares on the Rhônexpress. During April 2019, the Lyon Metropole commenced negotiations with the consortium, intending to secure
10500-442: The team. The three basic forms of price discrimination are first, second and third degree price discrimination. In first degree price discrimination the company charges the maximum price each customer is willing to pay. The maximum price a consumer is willing to pay for a unit of the good is the reservation price. Thus for each unit the seller tries to set the price equal to the consumer's reservation price. Direct information about
10605-664: The tramways in Le Mans , Angers and Paris . All doors are automatically operated, and are designed to readily allow the movement of wheelchairs and pushchairs . Each tram-train is provisioned with two dedicated areas that provide greater stability for wheelchair users during travel; in addition to grab bars, seat belts are also provided for the purpose of restraining the chair. [REDACTED] Media related to Rhônexpress at Wikimedia Commons 45°45′37″N 4°51′43″E / 45.7602°N 4.8620°E / 45.7602; 4.8620 Stadler Rail Stadler Rail AG
10710-407: The venture for itself, thus forming a government monopoly , for example with a state-owned company . Monopolies may be naturally occurring due to limited competition because the industry is resource intensive and requires substantial costs to operate (e.g., certain railroad systems). Market structure is determined by following factors: In economics, the idea of monopolies is important in
10815-582: The way to Lyon-Saint Exupéry Airport . The route has a total length of 22 km (14 mi), 7 km (4.3 mi) of which has been recently built, running largely between the Meyzieu ZI and the Lyon-Saint Exupery stations. There are four stations along the line: Of these four stations, Vaulx-en-Velin and Meyzieu ZI are intermediate stations. All stations have been designed with accessibility in mind, either being directly accessible from
10920-539: Was listed on the SIX Swiss Exchange , reducing Spuhler's stake in the company to 40%. Prior to the listing, Spuhler had owned 80% of the business's share capital, while RAG-Stiftung [ de ] held a further 10%, and the remaining 10% was divided amongst several senior employees at the firm. In recent years, the light rail and metro sectors have become increasingly important customers. Various operators in Germany, Norway, and Britain have adopted
11025-591: Was used in the 1914 book Social Economics written by Friedrich von Wieser. As mentioned, government regulations are frequently used with natural monopolies to help control prices. An example that can illustrate this can be found when looking at the United States Postal Service, which has a monopoly over types of mail. According to Wieser, the idea of a competitive market within the postal industry would lead to extreme prices and unnecessary spending, and this highlighted why government regulation in
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