Advanced Search
MyIDEAS: Login

Changes in transaction costs over time - The case of franchised train operating firms in Britain

Contents:

Author Info

  • Merkert, Rico

Abstract

The significant effects of competition, franchising and vertical separation of rail infrastructure from train operation on the level of transaction costs are often anecdotally described in the literature. Although it has been shown that franchising has an effect on total costs, there is very little empirical evidence on whether franchising has an impact on the level of transaction costs over time. One reason for this is, of course, the limited systematic work on the measurement of transaction costs in railways. This paper builds on recent work that applied a top-down approach to transaction cost measurement to identify the size of the transaction sector within rail firms in different EU countries. In cross-country comparison particularly, British train operators turned out to be associated with high levels of transaction costs. However, since the previous work focused on a single fiscal year it did not show any longitudinal effects within one institutional environment or country. Therefore, this paper focuses on British franchised passenger train operating firms and aims to reveal how the transaction sector within those firms has changed over the period 1996/1997-2007/2008 and whether the franchise contract details, such as contract length or the franchising regime, matter. It also aims to estimate the resulting changes in the level of transaction costs and their share in total operating costs for the first time.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B8JHM-50NGNT8-2/2/b9972f67768f69476e25305033bbf558
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Research in Transportation Economics.

Volume (Year): 29 (2010)
Issue (Month): 1 ()
Pages: 52-59

as in new window
Handle: RePEc:eee:retrec:v:29:y:2010:i:1:p:52-59

Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description

Order Information:
Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
Web: https://shop.elsevier.com/order?id=714194&ref=714194_01_ooc_2&version=01

Related research

Keywords: Transactions cost measurement Transaction cost determinants Franchising Railways Contracts;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Hendrik Dalen & Aico Vuuren, 2005. "Greasing the Wheels of Trade: A Profile of the Dutch Transaction Sector**," De Economist, Springer, vol. 153(2), pages 139-165, 06.
  2. Yvrande-Billon, Anne & Menard, Claude, 2005. "Institutional constraints and organizational changes: the case of the British rail reform," Journal of Economic Behavior & Organization, Elsevier, vol. 56(4), pages 675-699, April.
  3. Michael Dietrich, 2003. "The importance of management and transaction costs for large UK firms," Applied Economics, Taylor & Francis Journals, vol. 35(11), pages 1317-1329.
  4. Williamson, Oliver E., 2005. "Transaction cost economics and business administration," Scandinavian Journal of Management, Elsevier, vol. 21(1), pages 19-40, March.
  5. John J. Wallis & Douglass North, 1986. "Measuring the Transaction Sector in the American Economy, 1870-1970," NBER Chapters, in: Long-Term Factors in American Economic Growth, pages 95-162 National Bureau of Economic Research, Inc.
  6. Wallis, John Joseph & North, Douglass C., 1988. "Should Transaction Costs be Subtracted from Gross National Product?," The Journal of Economic History, Cambridge University Press, vol. 48(03), pages 651-654, September.
  7. Ning Wang, 2007. "Measuring Transaction Costs: Diverging Approaches, Contending Practices," Division of Labor & Transaction Costs (DLTC), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 111-146.
  8. Pittman Russell, 2005. "Structural Separation to Create Competition? The Case of Freight Railways," Review of Network Economics, De Gruyter, vol. 4(3), pages 1-16, September.
  9. Joskow, Paul L, 1987. "Contract Duration and Relationship-Specific Investments: Empirical Evidence from Coal Markets," American Economic Review, American Economic Association, vol. 77(1), pages 168-85, March.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Sébastien Cucurulo, 2011. "L'ouverture à la concurrence des TER, une opportunité d'affirmation de l'AOT régionale en tant que chef de file de l'organisation des transports régionaux ?," Post-Print dumas-00793119, HAL.
  2. Merkert, Rico & Hensher, David A., 2013. "Regulation, trust and contractual incentives around transport contracts – Is there anything bus operators can learn from public air service contracts?," Research in Transportation Economics, Elsevier, vol. 39(1), pages 67-78.
  3. Merkert, Rico & Cowie, Jonathan, 2012. "A quantitative cross-modal analysis of transportation firms’ transaction costs – Are airlines any different?," Journal of Air Transport Management, Elsevier, vol. 22(C), pages 3-8.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:29:y:2010:i:1:p:52-59. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.