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Theoretical And Viable Charging Models For Railway Infrastructure Access: An European Survey

Author

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  • Ugo ARRIGO

    (Department of Business Administration, Finance, Management and Law, University of Milano-Bicocca, Via Bicocca degli Arcimboldi 8, 20126 Milano)

  • Giacomo DI FOGGIA

    (Department of Business Administration, Finance, Management and Law, University of Milano-Bicocca, Via Bicocca degli Arcimboldi 8, 20126 Milano)

Abstract

This paper examines the pricing models for the use of the railway infrastructure in some European countries. A regulatory environment shall guarantee fair access to essential facilities, specifically in presence of vertically related markets and the existence of an essential facility provided only by one firm. This paper considers two pricing models classified according different principles: the model of marginal cost and the model of full cost. Given that the effective traffic does not influence the relevant fixed costs of the networks, managers will have expected curves of marginal cost firmly under the curves of average cost, and as a result, the current trade-off between the optimal use of the network and the optimal coverage of the costs. This paper states that countries where a marginal cost model is in use, the railway system has a smaller impact on public spending.

Suggested Citation

  • Ugo ARRIGO & Giacomo DI FOGGIA, 2014. "Theoretical And Viable Charging Models For Railway Infrastructure Access: An European Survey," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 6(2), pages 5-24, June.
    • Handle: RePEc:rom:mrpase:v:6:y:2014:i:2:p:5-24
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    References listed on IDEAS

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    Cited by:

    1. Martin Savelsbergh & Masoud Talebian, 2019. "Cost allocation under competition: a new rail access charging policy," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 8(5), pages 511-534, December.
    2. Anna DOLINAYOVA & Juraj CAMAJ & Juraj KANIS, 2017. "Charging Railway Infrastructure Models And Their Impact To Competitiveness Of Railway Transport," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 12(1), pages 139-150, March.
    3. Feras Tayeh & Osman Ghanem, 2023. "Decision-Making Support of Sustainable and Efficiency of Railway Project: Case Study China-Pakistan," International Journal of Decision Support System Technology (IJDSST), IGI Global, vol. 15(1), pages 1-25, January.
    4. Kristijan Solina & Borna Abramović, 2022. "Effects of Railway Market Liberalisation: European Union Perspective," Sustainability, MDPI, vol. 14(8), pages 1-15, April.

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