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Auction pricing of network access for North American railways

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  • Harrod, Steven

Abstract

The question of pricing train paths for “open access” railway networks in North America is discussed. An auction process is suggested as necessary to maintain transparency in the contracting process. Multiple random samples of auction pricing for a single track railway line demonstrate that the infrastructure entity will receive approximately 15.6% less than the true value of the contracted train paths. This loss of revenue threatens the objective of reducing government subsidy for the railway network.

Suggested Citation

  • Harrod, Steven, 2013. "Auction pricing of network access for North American railways," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 176-189.
    • Handle: RePEc:eee:transe:v:49:y:2013:i:1:p:176-189
    DOI: 10.1016/j.tre.2012.08.003
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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. Feng, Fenling & Zhang, Jiaqi & Liu, Chengguang, 2023. "Integrated pricing mechanism of China Railway Express whole-process logistics based on the Stackelberg game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 609(C).
    3. E. Ursavas & Stuart X. Zhu, 2018. "Integrated Passenger and Freight Train Planning on Shared-Use Corridors," Service Science, INFORMS, vol. 52(6), pages 1376-1390, December.
    4. Talebian, Ahmadreza & Zou, Bo & Peivandi, Ahmad, 2018. "Capacity allocation in vertically integrated rail systems: A bargaining approach," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 167-191.
    5. Stojadinović, Nikola & Bošković, Branislav & Trifunović, Dejan & Janković, Slađana, 2019. "Train path congestion management: Using hybrid auctions for decentralized railway capacity allocation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 129(C), pages 123-139.
    6. 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.
    7. Fenling Feng & Tianzuo Zhang & Chengguang Liu & Lifeng Fan, 2020. "China Railway Express Subsidy Model Based on Game Theory under “the Belt and Road” Initiative," Sustainability, MDPI, vol. 12(5), pages 1-16, March.

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