Access pricing and investment in vertical structures with complementary or rival facilities
In this paper we analyze the consequences of access pricing on infrastructure investment and intermodal competition. First, we analyze the optimal access prices to be charged to private operators. We find that the optimal access price to be charged for the use of a particular infrastructure depends on the existence of intermodal substitution or complementarity with other transport modes and infrastructures. Second, we analyze under which circumstances the investment in rail infrastructure is socially desirable both in a context with and without budget constraints. The positive net present value of the investment is not a sufficient condition. The necessary and sufficient condition implies a positive difference in social welfare for the cases in which the new infrastructure is and is not constructed.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eduardo M. R. A. Engel & Ronald D. Fischer & Alexander Galetovic, 2001.
"Least-Present-Value-of-Revenue Auctions and Highway Franchising,"
Journal of Political Economy,
University of Chicago Press, vol. 109(5), pages 993-1020, October.
- Eduardo Engel & Ronald Fischer & Alexander Galetovic, 1998. "Least-Present-Value-of-Revenue Auctions and Highway Franchising," Documentos de Trabajo 37, Centro de Economía Aplicada, Universidad de Chile.
- Eduardo M.R.A. Engel & Ronald D. Fischer & Alexander Galetovic, 1998. "Least-Present-Value-of-Revenue Auctions and Highway Franchising," NBER Working Papers 6689, National Bureau of Economic Research, Inc.
- Ginés de Rus & Gustavo Nombela, 2007. "Is Investment in High Speed Rail Socially Profitable?," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 41(1), pages 3-23, January.
- Ricardo Flores-Fillol & Rafael Moner-Colonques, 2007. "Strategic Formation of Airline Alliances," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 41(3), pages 427-449, September.
When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:2012-06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmen Arias)
If references are entirely missing, you can add them using this form.