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Competition And Pricing Of Essential Inputs: The Case Ofaccess Charges For The Use Of The Italian Rail Infrastructure

Author

Listed:
  • Arrigo, Ugo

    (Department of Business Administration, Finance, Management and Law, University of Milano-Bicocca, Milano, Italy)

  • Di Foggia, Giacomo

    (Department of Business Administration, Finance, Management and Law, University of Milano-Bicocca, Milano, Italy)

Abstract

This paper explores the access charge for the use of the Italian rail infrastructure. Access problems arise when the provision of a complete service to end users requires the combination of two or more inputs, one of which is non-competitive (OECD, 2004). It is a well-known fact that excessive access charges mean higher prices for rail passengers and rail freight companies when using the infrastructure. We conclude that the structure of the access charge has changed significantly with the recent introduction of the HS/HC (high-speed and high-capacity) network; specifically, the fixed component has lost importance, whilst the variable component reaches 94%. The results of this paper provide evidence of the access charge for HS/HC being above 13 €/km.

Suggested Citation

  • Arrigo, Ugo & Di Foggia, Giacomo, 2013. "Competition And Pricing Of Essential Inputs: The Case Ofaccess Charges For The Use Of The Italian Rail Infrastructure," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 4(3), pages 295-308.
    • Handle: RePEc:ris:utmsje:0087
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    Citations

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    Cited by:

    1. Ugo Arrigo & Giacomo Foggia, 2013. "Schemes And Levels Of State Aid To Rail Industry In Europe: Evidences From A Cross-Country Comparison," European Journal of Business and Economics, Central Bohemia University, vol. 8(3), pages 4101:8-4101, October.
    2. Matthias Aistleitner & Christian Grimm & Jakob Kapeller, 2018. "Auftragsvergabe, Leistungsqualitaet und Kostenintensitaet im Schienenpersonenverkehr. Eine internationale Perspektive," ICAE Working Papers 86, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    3. Arrigo, Ugo & Di Foggia, Giacomo, 2013. "Assessing the railways subsidy in selected European countries: insights from the Italian case," MPRA Paper 67830, University Library of Munich, Germany.
    4. 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.
    5. Nacima Baron, 2021. "Railway Terminal Regulation [La régulation des gares ferroviaires]," Post-Print hal-03231277, HAL.
    6. Laurino, Antonio & Ramella, Francesco & Beria, Paolo, 2015. "The economic regulation of railway networks: A worldwide survey," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 202-212.
    7. Desmaris, Christian & Croccolo, Fabio, 2018. "The HSR competition in Italy: How are the regulatory design and practices concerned?," Research in Transportation Economics, Elsevier, vol. 69(C), pages 290-299.
    8. Christian Desmaris & Fabio Croccolo, 2018. "La compétition « sur le marché » de la grande vitesse ferroviaire en Italie : une innovation de marché majeure pour un jeu « gagnant-gagnant » ?," Post-Print halshs-03116203, HAL.
    9. Vujicic, Maja & Vujicic-Tomic, Brankica & Klaric, Mia, 2019. "Meeting Halfway — Comparison Between Cost-Based And Demand-Based Pricing Methods," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 10(2), pages 215-225.

    More about this item

    Keywords

    railway; competition; access charge; Italy; regulation; high-speed;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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