Template-type: ReDIF-Paper 1.0 Author-Name: Ottoz Elisabetta Author-Email: elisabetta.ottoz@unito.it Author-Name: Di Giacomo Marina Author-Email: digiacomo@econ.unito.it Author-Workplace-Name: University of Turin Author-Workplace-Homepage: http://www.est.unito.it/ Title: Diversification strategies and scope economies: Evidence from a sample of Italian regional bus transport Pproviders Abstract: A growing number of local public transport (LPT) companies diversify their production lines by providing a large set of services. We investigate the cost structure of a sample of LPT companies operating in Italy in order to assess the presence and the magnitude of scope economies. We split thewhole sample of firms according to the diversification strategy: private firms, mainly diversifying in competitive transport-related services and public firms providing non-transport services in regulated markets. Regardless of the functional form and the method used, scope economies appear sizeable for both groups but higher for firms pursuing a transport related strategy, suggesting it should be preferable to the multi-utility development pursued by public LPT firms. Length: 33 pages Creation-Date: 2008-02 File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2008dip/2_wp_ottoz_digiacomo.pdf File-Format: Application/PDF Handle: RePEc:uto:dipeco:200802