IDEAS home Printed from https://ideas.repec.org/p/net/wpaper/1214.html
   My bibliography  Save this paper

Service Provision on a Railway Network: An Experiment

Author

Listed:
  • Aurora Garcia-Gallego

    () (Laboratorio de Economia Experimental and Economics Department, Universitat Jaume I)

  • Nikolaos Georgantzis

    () (Laboratorio de Economia Experimental, Universitat Jaume I and Economics Department, Universidad de Granada)

  • Gerardo Sabater-Grande

    () (Laboratorio de Economia Experimental and Economics Department, Universitat Jaume I)

Abstract

Inspired by the ongoing debate regarding the liberalization of the Spanish railway network, we use real-world information on the features of passenger transportation demand and the existing network infrastructure to build a complex experimental setting. We test the efficiency of alternative service provision obligations imposed to railway companies. Our results show that imposing a minimum service for less profitable connections not only improves consumer and overall welfare but will not harm the companies, because it enhances connectivity and the overall demand on the network. In the absence of such service provision restrictions, the companies failing to recognize the profitability of creating a complete network leave some connections unserved, thus reducing overall demand for passenger services.

Suggested Citation

  • Aurora Garcia-Gallego & Nikolaos Georgantzis & Gerardo Sabater-Grande, 2012. "Service Provision on a Railway Network: An Experiment," Working Papers 12-14, NET Institute.
  • Handle: RePEc:net:wpaper:1214
    as

    Download full text from publisher

    File URL: http://www.netinst.org/Georgantzis_12-14.pdf
    Download Restriction: no

    More about this item

    Keywords

    Transportation sector; Railway network; Experimental Economics;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:net:wpaper:1214. 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: (Nicholas Economides). General contact details of provider: http://www.NETinst.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.