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A review of passenger rail franchising in Britain: 1996/1997-2006/2007

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  • Preston, John

Abstract

This paper reviews 10 years of passenger rail franchising in Great Britain and highlights problems in three areas: the tension between commercial and social objectives; the presence of risks and uncertainty; and vulnerability to strategic behaviour such as low-balling, chiselling and back loading. It concludes that franchising has had some good features (such as the high level of competitive pressure) but also some bad features (such as a high rate of franchise failures). In addition, an ugly feature of franchising is the scope for strategic behaviour. Further reform is suggested based on a distinction between commercial and social franchises.

Suggested Citation

  • Preston, John, 2008. "A review of passenger rail franchising in Britain: 1996/1997-2006/2007," Research in Transportation Economics, Elsevier, vol. 22(1), pages 71-77, January.
    • Handle: RePEc:eee:retrec:v:22:y:2008:i:1:p:71-77
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    References listed on IDEAS

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    1. Emile Quinet & Roger Vickerman, 2004. "Principles of Transport Economics," Books, Edward Elgar Publishing, number 2581.
    2. Michael G. Pollitt & Andrew S. J. Smith, 2002. "The restructuring and privatisation of British Rail: was it really that bad?," Fiscal Studies, Institute for Fiscal Studies, vol. 23(4), pages 463-502, December.
    3. John Preston & Gerard Whelan & Chris Nash & Mark Wardman, 2000. "The Franchising of Passenger Rail Services in Britain," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(1), pages 99-112.
    4. Yvrande-Billon, Anne & Menard, Claude, 2005. "Institutional constraints and organizational changes: the case of the British rail reform," Journal of Economic Behavior & Organization, Elsevier, vol. 56(4), pages 675-699, April.
    5. Richard D Knowles, 2004. "Impacts of Privatising Britain's Rail Passenger Services—Franchising, Refranchising, and Ten Year Transport Plan targets," Environment and Planning A, , vol. 36(11), pages 2065-2087, November.
    6. J Cowie, 2002. "Subsidy and Productivity in the Privatised British Passenger Railway," Economic Issues Journal Articles, Economic Issues, vol. 7(1), pages 25-38, March.
    7. Gourvish, Terry, 2002. "British Rail 1974-1997: From Integration to Privatisation," OUP Catalogue, Oxford University Press, number 9780199250059.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. La liberalización del sector ferroviario… ponerse la venda antes de la herida
      by Juan José Ganuza in Nada Es Gratis on 2014-06-05 11:00:57

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    Cited by:

    1. Preston, John & Bickel, Charles, 2020. "And the beat goes on. The continued trials and tribulations of passenger rail franchising in Great Britain," Research in Transportation Economics, Elsevier, vol. 83(C).
    2. Preston, John, 2023. "All things must pass? Recent changes to competition and ownership in public transport in Great Britain," Research in Transportation Economics, Elsevier, vol. 99(C).
    3. Carmen A. Li & John Stittle, 2014. "Privatisation and Franchising of British Train Operations," Australian Accounting Review, CPA Australia, vol. 24(1), pages 53-65, March.
    4. Preston, John, 2018. "The wheels keep on turning: Is the end of rail franchising in Britain in sight?," Research in Transportation Economics, Elsevier, vol. 69(C), pages 187-196.
    5. Bray, David & Sayeg, Philip, 2013. "Private sector involvement in urban rail: Experience and lessons from South East Asia," Research in Transportation Economics, Elsevier, vol. 39(1), pages 191-201.
    6. Smith, Andrew S.J. & Wheat, Phill E. & Nash, Chris A., 2010. "Exploring the effects of passenger rail franchising in Britain: Evidence from the first two rounds of franchising (1997-2008)," Research in Transportation Economics, Elsevier, vol. 29(1), pages 72-79.
    7. Quiroz Flores, Alejandro & Pfaff, Katharina, 2021. "Private provision of public goods and political survival: Rail transport in four European democracies in the 20th century," Research in Transportation Economics, Elsevier, vol. 90(C).
    8. Preston, John, 2016. "Deja Vu all over again? Rail franchising in Britain," Research in Transportation Economics, Elsevier, vol. 59(C), pages 107-115.
    9. Álvarez-SanJaime, Óscar & Cantos-Sanchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, Jose J., 2015. "A model of internal and external competition in a High Speed Rail line," Economics of Transportation, Elsevier, vol. 4(3), pages 178-187.

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