Railways and the Just Price
21 Pages Posted: 31 Aug 2006
Date Written: August 25, 2006
How much should one expect to pay for a railway ticket? This is a fairly simple question, but one which has vexed policymakers for almost two centuries. The difficulty for policymakers is that, once one departs from competitive economic models, it is very difficult to determine what the price 'should' be. This paper surveys responses made by policymakers throughout rail's history. It makes a qualified case for the use of fairness, rather than efficiency, as a key tool in regulation.
Keywords: railway regulation, fair pricing, efficienct pricing
JEL Classification: C70, D63, K23, L92
Suggested Citation: Suggested Citation