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Competition issues in network industries: the Latin American railways experience

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  • Javier Campos

    (University of Las Palmas)

Abstract

This paper discusses several competition issues that have emerged in the Latin American rail industry after the recent restructuring experiences started during the 1990s. The analysis focuses on Brazil and Mexico providing a brief account of the main characteristics of the concessioning process in each of these two countries. The relevant competition issues are then analyzed from a double perspective. First, it is shown that many of the most relevant conflicts can be traced back to the design of the concessioning contracts and the auctioning rules through which they were awarded. Secondly, other antitrust issues have arisen from the network nature of the rail industry and the fact that all countries opted by horizontal separation methods in their rail restructuring.

Suggested Citation

  • Javier Campos, 2002. "Competition issues in network industries: the Latin American railways experience," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 5(1), May.
    • Handle: RePEc:bej:issued:v:5:y:2002:i:1:campos
    as

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    File URL: http://www.beje.decon.ufpe.br/v5n1/campos.pdf
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    References listed on IDEAS

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    1. Laffont, Jean-Jacques & Tirole, Jean, 1994. "Access pricing and competition," European Economic Review, Elsevier, vol. 38(9), pages 1673-1710, December.
    2. 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.
    3. Campos, J., 2001. "Lessons from railway reforms in Brazil and Mexico," Transport Policy, Elsevier, vol. 8(2), pages 85-95, April.
    4. Kerf, M. & Gray, R.D. & Irwin, T. & Levesque, C. & Taylor, R.R. & Klein, M., 1998. "Concessions for Infrastructure. A Guide to their Design and Award," Papers 399, World Bank - Technical Papers.
    5. J. Gregory Sidak & William Baumol, 1994. "Toward Competition in Local Telephony," Books, American Enterprise Institute, number 52984, September.
    6. Javier Campos, 2013. "Air transport," Chapters, in: Mattias Finger & Torben Holvad (ed.), Regulating Transport in Europe, chapter 2, pages 36-60, Edward Elgar Publishing.
    7. Antonio Estache & Gines De Rus, 2000. "Privatization and Regulation of Transport Infrastructure : Guidelines for Policymakers and Regulators," World Bank Publications - Books, The World Bank Group, number 15199.
    8. Kenneth D. Boyer, 1987. "The Costs of Price Regulation: Lessons from Railroad Deregulation," RAND Journal of Economics, The RAND Corporation, vol. 18(3), pages 408-416, Autumn.
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    Cited by:

    1. Russell Pittman, 2009. "Competition Issues in Restructuring Ports and Railways, Including Brief Consideration of these Sectors in India," EAG Discussions Papers 200906, Department of Justice, Antitrust Division.

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    More about this item

    Keywords

    railways; transport networks; competition; Latin America;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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