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Competition and Industry Structure for International Rail Transportation

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  • Friebel, Guido
  • Ivaldi, Marc
  • Pouyet, Jérôme

Abstract

This paper investigates various options for the organization of the railway industry when network operators require the access to multiple national networks to provide international (freight or passenger) transport services. The EU rail system provides a framework for our analysis. Returns-to-scale and the intensity of competition are key to understanding the impact of vertical integration or separation between infrastructure and operation services within each country in the presence of international transport services. We also consider an option in which a transnational infrastructure manager is in charge of offering a coordinated access to the national networks. In our model, it turns out to be an optimal industry structure.

Suggested Citation

  • Friebel, Guido & Ivaldi, Marc & Pouyet, Jérôme, 2011. "Competition and Industry Structure for International Rail Transportation," IDEI Working Papers 680, Institut d'Économie Industrielle (IDEI), Toulouse, revised 07 Jun 2012.
    • Handle: RePEc:ide:wpaper:24795
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    References listed on IDEAS

    as
    1. Ivaldi Marc & Mccullough Gerard, 2008. "Subadditivity Tests for Network Separation with an Application to U.S. Railroads," Review of Network Economics, De Gruyter, vol. 7(1), pages 1-13, March.
    2. Bassanini, Anna & Pouyet, Jerome, 2005. "Strategic choice of financing systems in regulated and interconnected industries," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 233-259, February.
    3. Ivaldi, M & McCullough, G J, 2001. "Density and Integration Effects on Class I U.S. Freight Railroads," Journal of Regulatory Economics, Springer, vol. 19(2), pages 161-182, March.
    4. Per Agrell & Jerôme Pouyet, 2004. "The Regulation of Transborder Network Services," Working Papers 2004-38, Center for Research in Economics and Statistics.
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    Cited by:

    1. von Arx, Widar & Thao, Vu Thi & Wegelin, Philipp & Maarfield, Simon & Frölicher, Jonas, 2018. "The development of international passenger rail services from 2007 to 2016: The case of Switzerland," Research in Transportation Economics, Elsevier, vol. 69(C), pages 326-336.

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    More about this item

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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