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Benefits and Costs of vertical Separation in Network Industries. The Case of Railway Transport in the European Environment

Author

Listed:
  • Krol, Marcin

Abstract

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.

Suggested Citation

  • Krol, Marcin, 2009. "Benefits and Costs of vertical Separation in Network Industries. The Case of Railway Transport in the European Environment," MPRA Paper 23815, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:23815
    as

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    File URL: https://mpra.ub.uni-muenchen.de/23815/1/MPRA_paper_23815.pdf
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    References listed on IDEAS

    as
    1. Christian Growitsch & Heike Wetzel, 2006. "Economies of Scope in European Railways: An Efficiency Analysis," Working Paper Series in Economics 29, University of Lüneburg, Institute of Economics.
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    More about this item

    Keywords

    network industries; public utilities; railway transport; economic regulation; liberalisation; vertical separation;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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