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Separation versus Integration in International Rail Markets: A Theoretical Investigation

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  • Friebel, Guido
  • Ivaldi, Marc
  • Pouyet, Jérôme

Abstract

This paper investigates various options for the organization of the railway industry when network operators require the access to multiple national networks to provide international (freight or passenger) transport services. The EU rail system provides a framework for our analysis. Returns-to-scale and the intensity of competition are key to understanding the impact of vertical integration or separation between infrastructure and operation services within each country in the presence of international transport services. We also consider an option in which a transnational infrastructure manager is in charge of offering a coordinated access to the national networks. In our model, it turns out to be an optimal industry structure.

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File URL: http://idei.fr/doc/by/ivaldi/International-Competition%20EofT.PDF
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Bibliographic Info

Paper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 11-248.

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Date of creation: 18 Jul 2011
Date of revision: Mar 2013
Handle: RePEc:tse:wpaper:24800

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Keywords: Regulation; competition; vertical integration; rail passenger transportation.;

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  1. Per Agrell & Jérôme Pouyet, 2005. "The régulation of transborder network services," Working Papers hal-00243022, HAL.
  2. Ivaldi, Marc & McCullough, Gerard, 2004. "Subadditivity Tests for Network Separation with an Application to US Railroads," CEPR Discussion Papers 4392, C.E.P.R. Discussion Papers.
  3. Ivaldi, Marc & Mccullough, Gerard, 1999. "Density and Integration Effects on Class I U.S. Freight Railroads," IDEI Working Papers 93, Institut d'Économie Industrielle (IDEI), Toulouse.
  4. BASSANINI, Anna & POUYET, Jérôme, 2002. "Strategic choice of financing systems in regulated and interconnected industries," CORE Discussion Papers 2002017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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