Commissioned by Deutsche Bahn AG, WIK-Consult has carried out in September 2006 a study dealing with "The issue of market dominance of Deutsche Bahn AG". Applying the theoretical framework of a hypothetical monopolist test on relevant transport markets, the study intends to enlighten market structures in different transport sectors, to clarify the market position of Deutsche Bahn AG, and to look into the consequences on the rail network and DB Netz AG.
For that purpose, concepts of market delimitation and dominance as well as of the SSNIP test are explained. Subsequently, a delimitation of four selected transport markets (long-distance passenger transport of business travellers, local passenger transport, transport of bulk commodities, truck-load transport) is effected, supplemented with a calculation of the market shares of Deutsche Bahn AG and additional considerations on the existence of potential market power. Finally, the study assesses how much market power Deutsche Bahn AG can exert through the de facto rail infrastructure monopoly of its subsidiary DB Netz AG. Relying on public available figures, the reaction of rail infrastructure demand is examined taking into account a non-transitory increase in input prices of 5 per cent by DB Netz AG.
The final report has been published by Deutsche Bahn AG on its website for downloading (available in German only).