Competition and Industry Structure for International Rail Transportation
Goethe University Frankfurt; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)
Toulouse School of Economics; Centre for Economic Policy Research (CEPR)
Ecole Nationale des Ponts et Chaussées (ENPC) - Centre d'Enseignement et de Recherche en Analyse Socio-Economique (CERAS); National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); Centre for Economic Policy Research (CEPR)
CEPR Discussion Paper No. DP8491
This paper investigates various options for the organization of the railway industry when network operators require the access to multiple national networks to provide international (freight or passenger) transport services. The EU rail system provides a framework for our analysis. Returns-to-scale and the intensity of competition are key to understanding the impact of vertical integration or separation between infrastructure and operation services within each country in the presence of international transport services. We also consider an option in which a transnational infrastructure manager is in charge of offering a coordinated access to the national networks. In our model, it turns out to be an optimal industry structure.
Number of Pages in PDF File: 37
Keywords: Network access, Transport economics, Vertical Separation
JEL Classification: L14, L42, L51, L92
Date posted: July 28, 2011
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