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The Privatisation of the UK Railway Industry: An Experiment in Railway Structure

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  • Richard Wellings

Abstract

The British rail network was privatised in the mid- to late 1990s. However, the sector was heavily regulated and not permitted to evolve according to market processes. Indeed, the government imposed a complex and fragmented structure on the industry which ran counter to traditional railway practices. As a consequence, economies of scale and scope were lost, while transaction costs were increased. There was a negative impact on costs and safety. Given the disappointing outcomes, there is a strong case for reforming the sector by facilitating the development of a privately owned and vertically integrated rail system.

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  • Richard Wellings, 2014. "The Privatisation of the UK Railway Industry: An Experiment in Railway Structure," Economic Affairs, Wiley Blackwell, vol. 34(2), pages 255-266, June.
    • Handle: RePEc:bla:ecaffa:v:34:y:2014:i:2:p:255-266
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    References listed on IDEAS

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