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Limits to the (De-)Regulation of Transport Services

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  • Knieps, Günter

Abstract

In section 1 the disaggregated approach of network economics is explained which distinguishes between the network levels transport services, traffic control systems and fixed infrastructure. Section 2 starts with an explanation of the theory of monopolistic bottlenecks, which can be used as a basis for distinguishing between parts of a network where competition functions efficiently and those that enjoy stable, network-specific market power. Section 3 explores the opportunities for potential and active competition on the markets for transport services, while Section 4 explains the potential for auction competition in respect of air traffic and train control systems. Section 5 is devoted to regulation in connection with access to transport infrastructure, including the relationship between disaggregated regulation of bottlenecks and the essential facilities theory, and the development of an appropriate approach towards regulation of access charges. Lastly, the paper looks at the ongoing reform of access to European airports (Section 6) and rail networks (Section 7).

Suggested Citation

  • Knieps, Günter, 2004. "Limits to the (De-)Regulation of Transport Services," Discussion Papers 99, University of Freiburg, Institute for Transport Economics and Regional Policy.
    • Handle: RePEc:zbw:aluivr:99
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    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. Knieps, Gunter, 1997. "Phasing Out Sector-Specific Regulation in Competitive Telecommunications," Kyklos, Wiley Blackwell, vol. 50(3), pages 325-339.
    3. Günter Knieps, 1995. "Standardization: The Evolution of Institutions versus Government Intervention," Palgrave Macmillan Books, in: Lüder Gerken (ed.), Competition among Institutions, chapter 11, pages 283-296, Palgrave Macmillan.
    4. Wolf, Hartmut, 1995. "Möglichkeiten und Grenzen marktwirtschaftlicher Verfahren zur Vergabe von Start-, Landerechten auf Flughäfen: Vorschlag für ein zweitbestes Auktionsverfahren," Kiel Working Papers 671, Kiel Institute for the World Economy (IfW Kiel).
    5. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    6. Knieps, Günter, 1996. "Wettbewerb in Netzen," Beiträge zur Ordnungstheorie und Ordnungspolitik, Mohr Siebeck, Tübingen;Walter Eucken Institut, Freiburg, Germany, edition 1, volume 127, number urn:isbn:9783161466083, December.
    7. John C. Panzar & Robert D. Willig, 1977. "Free Entry and the Sustainability of Natural Monopoly," Bell Journal of Economics, The RAND Corporation, vol. 8(1), pages 1-22, Spring.
    8. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
    9. Lüder Gerken (ed.), 1995. "Competition among Institutions," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-24262-7.
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    Cited by:

    1. Knieps, Günter, 2006. "The different role of mandatory access in German regulation of railroads and telecommunications," Discussion Papers 104 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Knieps, Günter, 2005. "Competition in the post-trade markets: A network economic analysis of the securities business," Discussion Papers 101 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. Knieps, Günter, 2004. "Privatisation of Network Industries in Germany: A Disaggregated Approach," Discussion Papers 100, University of Freiburg, Institute for Transport Economics and Regional Policy.

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