The Introduction of Rail Transport in the Prussian Rhine Province: A Transaction Cost Economic History

20 Pages Posted: 8 Feb 2008 Last revised: 7 Apr 2008

See all articles by Martin Holterman

Martin Holterman

European University Institute - Florence School of Regulation

Date Written: April 1, 2008

Abstract

This paper examines the usefulness of Coasian Transaction Cost Economics for describing the governance outcomes for semi-public markets, i.e. markets where some government involvement is indispensable, and where the government transacts with private parties, or provides the service in-house.

Given the high degree of path dependence in such governance choices, this paper examines the moment of technological innovation, where outcomes are expected to be the least path dependent. To be precise, the case under consideration is the first introduction of rail transport in Germany, in the Ruhe area. This case study is confronted with a bare minimum transaction cost model, i.e. a statement of the minimum requirements that need to be present in order to make a transaction cost model a viable source of understanding.

Keywords: transaction costs, path dependence, economic history, railways

JEL Classification: D23, D63, D70, D71,D72,D78,D83,H40,H54,K22,L33,L92

Suggested Citation

Holterman, Martin, The Introduction of Rail Transport in the Prussian Rhine Province: A Transaction Cost Economic History (April 1, 2008). Available at SSRN: https://ssrn.com/abstract=1091151 or http://dx.doi.org/10.2139/ssrn.1091151

Martin Holterman (Contact Author)

European University Institute - Florence School of Regulation ( email )

Florence
Italy

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