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Structural reforms in the railways: Incentive misalignment and cost implications

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  • Nash, Chris A.
  • Smith, Andrew S.J.
  • van de Velde, Didier
  • Mizutani, Fumitoshi
  • Uranishi, Shuji

Abstract

In Europe, many countries have completely separated their railways into totally separate infrastructure managers and railway undertakings (train operators) and the European Commission has sought to make such complete vertical separation a legal requirement.

Suggested Citation

  • Nash, Chris A. & Smith, Andrew S.J. & van de Velde, Didier & Mizutani, Fumitoshi & Uranishi, Shuji, 2014. "Structural reforms in the railways: Incentive misalignment and cost implications," Research in Transportation Economics, Elsevier, vol. 48(C), pages 16-23.
    • Handle: RePEc:eee:retrec:v:48:y:2014:i:c:p:16-23
    DOI: 10.1016/j.retrec.2014.09.027
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    References listed on IDEAS

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    1. Fumitoshi Mizutani & Shuji Uranishi, 2013. "Does vertical separation reduce cost? An empirical analysis of the rail industry in European and East Asian OECD Countries," Journal of Regulatory Economics, Springer, vol. 43(1), pages 31-59, January.
    2. Fumitoshi Mizutani & Andrew Smith & Chris Nash & Shuji Uranishi, 2015. "Comparing the Costs of Vertical Separation, Integration, and Intermediate Organisational Structures in European and East Asian Railways," Journal of Transport Economics and Policy, University of Bath, vol. 49(3), pages 496-515, July.
    3. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    4. Christian Growitsch & Heike Wetzel, 2009. "Testing for Economies of Scope in European Railways: An Efficiency Analysis," Journal of Transport Economics and Policy, University of Bath, vol. 43(1), pages 1-24, January.
    5. Rico Merkert & Andrew S. J. Smith & Chris A. Nash, 2012. "The Measurement of Transaction Costs - Evidence from European Railways," Journal of Transport Economics and Policy, University of Bath, vol. 46(3), pages 349-365, September.
    6. Prater, Marvin & Sparger, Adam & Bahizi, Pierre & O'Neil, Daniel Jr., 2013. "Rail’s Loss of Grain Transportation Market Share," Research Reports 161206, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
    7. Pedro Cantos & José Manuel Pastor & Lorenzo Serrano, 2010. "Vertical and Horizontal Separation in the European Railway Sector and its Effects on Productivity," Journal of Transport Economics and Policy, University of Bath, vol. 44(2), pages 139-160, May.
    8. Pittman, Russell, 2007. "Options for Restructuring the State-Owned Monopoly Railway," Research in Transportation Economics, Elsevier, vol. 20(1), pages 179-198, January.
    9. Mette Asmild & Torben Holvad & Jens Hougaard & Dorte Kronborg, 2009. "Railway reforms: do they influence operating efficiency?," Transportation, Springer, vol. 36(5), pages 617-638, September.
    10. E.B. Kibalov & (kibalovE@mail.ru) & A.A. Kin (kin_a@ieie.nsc.ru), 2013. "On Issues of Reforming Russian Railway Transport," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 1.
    11. Chris Nash, 2013. "Rail transport," Chapters, in: Mattias Finger & Torben Holvad (ed.), Regulating Transport in Europe, chapter 3, pages 61-81, Edward Elgar Publishing.
    12. Prater, Marvin E. & Sparger, Adam & Bahizi, Pierre & O’Neil, Daniel Jr., 2013. "Rail Market Share of Grain and Oilseed Transportation," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 52(2).
    13. Nash, Chris, 2010. "European rail reform and passenger services - the next steps," Research in Transportation Economics, Elsevier, vol. 29(1), pages 204-211.
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    Cited by:

    1. Mizutani, Fumitoshi, 2020. "A comparison of vertical structural types in the railway industry: A simple mathematical explanation model," Research in Transportation Economics, Elsevier, vol. 81(C).
    2. Andersson, Matts & Hultén, Staffan, 2016. "Transaction and transition costs during the deregulation of the Swedish Railway market," Research in Transportation Economics, Elsevier, vol. 59(C), pages 349-357.
    3. Gordan Stojić & Dušan Mladenović & Olegas Prentkovskis & Slavko Vesković, 2018. "A Novel Model for Determining Public Service Compensation in Integrated Public Transport Systems," Sustainability, MDPI, vol. 10(9), pages 1-20, August.
    4. David Besanko & Shana Cui, 2016. "Railway restructuring and organizational choice: network quality and welfare impacts," Journal of Regulatory Economics, Springer, vol. 50(2), pages 164-206, October.
    5. Badura, Ondřej & Melecký, Aleš & Melecký, Martin, 2023. "Liberalizing passenger rail: The effect of competition on local unemployment," Economics of Transportation, Elsevier, vol. 36(C).
    6. Jakub Chini & Martin Kvizda & Ondřej Špetík, 2023. "What is the real power of incumbents? Case study on the Czech Republic," Competition and Regulation in Network Industries, , vol. 24(1), pages 24-39, March.
    7. Tomeš, Zdeněk, 2017. "Do European reforms increase modal shares of railways?," Transport Policy, Elsevier, vol. 60(C), pages 143-151.
    8. Cui, Shana & Pittman, Russell & Zhao, Jian, 2018. "Restructuring the Chinese Freight Railway: Two Scenarios," MPRA Paper 88407, University Library of Munich, Germany.
    9. Fröidh, Oskar & Nelldal, Bo-Lennart, 2015. "The impact of market opening on the supply of interregional train services," Journal of Transport Geography, Elsevier, vol. 46(C), pages 189-200.
    10. Mu, Rui & de Jong, Martin & Ma, Yongchi & Xi, Bao, 2015. "Trading off public values in High-Speed Rail development in China," Journal of Transport Geography, Elsevier, vol. 43(C), pages 66-77.
    11. Lerida-Navarro, Carlos & Nombela, Gustavo & Tranchez-Martin, Jose M., 2019. "European railways: Liberalization and productive efficiency," Transport Policy, Elsevier, vol. 83(C), pages 57-67.

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    More about this item

    Keywords

    Structure; Railways; Incentives; Cost; Transactions;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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