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Evolution of Railroad Economics

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  • Waters II, William G.

Abstract

This paper reviews major themes in the evolution of railroad economics over the past century and a half. The earliest writings emphasized links between railroads and economic development generally. Increasing returns and their implications for market structure and efficiency became a rationale for public intervention (regulation or government ownership). Railway rate theory was the precursor to modern multiproduct pricing theory, and railroads were the data source and focus for the development of cost function estimation. The economic analysis of regulatory performance and subsequent deregulation in North America were models of modern applied economics. The persistent problem of rail market power in some markets still stimulates debate about policy interventions to either regulate or stimulate competition to promote efficiency.

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  • Waters II, William G., 2007. "Evolution of Railroad Economics," Research in Transportation Economics, Elsevier, vol. 20(1), pages 11-67, January.
    • Handle: RePEc:eee:retrec:v:20:y:2007:i:1:p:11-67
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    8. Pittman, Russell & Choi, Sunghee, 2013. "The Economics of Railways Restructuring in South Korea," MPRA Paper 44992, University Library of Munich, Germany.
    9. Marc Laperrouza, 2011. "Reforming Railways," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 13, Edward Elgar Publishing.
    10. Coublucq, Daniel, 2013. "Demand estimation with selection bias: A dynamic game approach with an application to the US railroad industry," DICE Discussion Papers 94, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

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