Krol, Marcin (2009): Benefits and Costs of vertical Separation in Network Industries. The Case of Railway Transport in the European Environment. Published in: Yearbook of Antitrust and Regulatory Studies , Vol. 2, No. 2 (2009): pp. 169-191.
Download (301Kb) | Preview
The article is devoted to a phenomenon called vertical separation in the area of network industries. Vertical separation is understood as de-merging of infrastructure and delegating control over it to independent manager banned from operating on downstream markets which are subject to liberalisation. Arguments for and against these tendencies have been examined using the example of the European railway transport. The complete analysis presents vertical separation as a promising solution for the railway industry. One of the conditions for the success of this reform is forming of a close cooperative relationship, based on loyalty and trust, between the infrastructure manager and its clients – rail operators. Building such a relationship should be supported by the implemented regulatory policy.
|Item Type:||MPRA Paper|
|Original Title:||Benefits and Costs of vertical Separation in Network Industries. The Case of Railway Transport in the European Environment|
|Keywords:||network industries, public utilities, railway transport, economic regulation, liberalisation, vertical separation|
|Subjects:||K - Law and Economics > K2 - Regulation and Business Law > K21 - Antitrust Law|
|Depositing User:||Michał Mijal|
|Date Deposited:||13. Jul 2010 09:07|
|Last Modified:||14. Feb 2013 07:57|
A Platform of change. The Potential of Vertical Integration on Britain’s Railways. A discussion paper, Stagecoach Group plc, November 2001.
Carlton D. W., Klamer J. M., “The Need for Coordination Among Firms, with Special Reference to Network Industries” (1983) 50 University of Chicago Law Review.
Carlton D. W., Perloff J. M., Modern Industrial Organization, Boston 2005.
Chandler A. D., The Visible Hand: The Managerial Revolution in American Business, Cambridge 1977.
Cremer H., Cremer J., De Donder P., “Costs and Benefits of Vertical Divestiture” (2008) 68 Communications & Strategies.
Evans J., The case for separation of infrastructure, EIM 2002 available at: http://www.eimrail.org/pdf/polipapers/The_case_for_Separation__EIM_point_of_view.pdf
Gómez-Ibáñez J. A., Regulating Infrastructure. Monopoly, Contracts and Discretion, Cambridge 2003.
Nash Ch., Rivera-Trujillo C., Rail regulatory reform in Europe – principles and practice. Paper presented at the Conference on Competition in the rail industry, Madrid, September 2004.
Ordover J. A., Saloner G., “Predation, Monopolization and Antitrust” [in:] Schmalensee R., Willig R.D. (eds.), Handbook of Industrial Organization, vol. 1, Amsterdam 1989.
Pfund C., “The separation of railway infrastructure and operations constitutes a fundamental mistake” (2003) 3 Public Transport International.
Pittman R., Structural Separation and Access Pricing in the Railways Sector: Sauce for the Goose Only? (October 15, 2004), available at SSRN (Social Science Research Network)
Structural reform in the rail industry, DAF/COMP(2005)46, (OECD 2005).
Sulejewicz A., Partnerstwo strategiczne: modelowanie współpracy przedsiębiorstw [Strategic Partnership: Modelling of the Co-operation of Untertakings], Warszawa 1997.
Veblen T., An Inquiry Into the Nature of Peace and the Terms of Its Perpetuation, The Macmillan Company, 1917.
Growitsch C., Wetzel H., Economies of Scope in European Railways: An Efficiency Analysis, “University of Lüneburg Working Paper Series in Economics”, No. 29, July 2006. http://opus.uni-lueneburg.de/opus/volltexte/2006/387/pdf/wp_29_Upload.pdf
Williamson O. E., The Economic Institutions of Capitalism. Firms, markets, relational contracting, Free Press 1985.