Separability and Subadditivity in Australian Railways*

14 Pages Posted: 19 Mar 2008

Abstract

Economic reform in the mid-1990s saw the application of third-party access to railway infrastructure and, in some cases, the separation of above-rail and below-rail services into separate businesses. Reform was based on the notion that the rail track was a natural monopoly, while the above-rail sector could potentially support competition. This paper examines the likelihood of such competition through an analysis of subadditivity, and also the consequences of vertical separation for rail efficiency. It finds limited evidence for sustainable above-rail competition, but also limited evidence that vertical separation should have caused efficiency losses.

Suggested Citation

Wills-Johnson, Nick, Separability and Subadditivity in Australian Railways*. Economic Record, Vol. 84, Issue 264, pp. 95-108, March 2008. Available at SSRN: https://ssrn.com/abstract=1106451 or http://dx.doi.org/10.1111/j.1475-4932.2008.00449.x

Nick Wills-Johnson (Contact Author)

DBP ( email )

PO Box Z5267
St Georges Terrace
Perth, 6831
Australia

Register to save articles to
your library

Register

Paper statistics

Downloads
13
Abstract Views
276
PlumX Metrics