J 2017

Public and Private Provision of Railway Services: A Case Study from Slovakia

JURIKOVIČ, Martin and Zdeněk TOMEŠ

Basic information

Original name

Public and Private Provision of Railway Services: A Case Study from Slovakia

Authors

JURIKOVIČ, Martin (703 Slovakia) and Zdeněk TOMEŠ (203 Czech Republic, guarantor, belonging to the institution)

Edition

Review of Network Economics, WALTER DE GRUYTER GMBH, 2017, 2194-5993

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50202 Applied Economics, Econometrics

Country of publisher

Germany

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

Impact factor

Impact factor: 0.357

RIV identification code

RIV/00216224:14560/17:00104020

Organization unit

Faculty of Economics and Administration

UT WoS

000441915900009

Keywords in English

competition; ownership; rail usage; railways; subsidies

Tags

International impact, Reviewed
Změněno: 8/3/2024 13:18, Mgr. Pavlína Kurková

Abstract

V originále

This paper is aimed at evaluating the net gains and trade-offs at stake in implementing the competition of the rail mode in the long distance passenger market either by means of franchise or by an open access mechanism. We simulate the outcomes of competition in and for the market using a differentiatedproducts oligopoly model allowing for inter- and intra-modal competition in a long distance passenger market. Specifically we first calibrate the model using data describing high speed lines in France and show that the incumbent railway operator’s strategy does not simply boil down to a short-term profit maximization (e.g. because of existing regulation or limit-pricing strategy). This yields two important results when simulating competition. First, whether it is for or in the market, the opening to competition does not guarantee a decrease in prices in favor of passengers. Second, the effects of opening up to competition for the market are relatively predictable and potentially positive, while those of opening up to competition in the market remain very uncertain.

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