Entry in liberalized railway markets: The German experience

Rafael Lalive and Armin Schmutzler

No 609, SOI - Working Papers from Socioeconomic Institute - University of Zurich

Abstract: In Germany, competitive franchising is increasingly being used to procure passenger railway services that were previously provided by a state monopolist. This paper analyzes the 77 tenders that have taken place since the railway reform in 1994. The tenders differ with respect to the size of the franchise network, the required frequency of service, the duration of the contract and the proximity to other lines that are already run by competitors of DB Regio, a subsidiary of the successor of the former state monopolist. Our analysis shows that larger networks are less likely to be won by the competitors. Also, more recent auctions have been won by competitors more frequently than earlier auctions. Other control variables such as the duration of the contract and the adjacency to other lines run by entrants are insignificant.

Keywords: Competition for the market; liberalization; passenger railways; procurement auctions (search for similar items in EconPapers)
JEL-codes: D43 D44 R48 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2006-11, Revised 2007-04
New Economics Papers: this item is included in nep-com, nep-cse and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published in Review of Network Economics, 7(1), pp. 37-52, 2008

Downloads: (external link)
https://www.zora.uzh.ch/id/eprint/52369/1/wp0609.pdf revised version, 2007 (application/pdf)

Related works:
Journal Article: Entry in Liberalized Railway Markets: The German Experience (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:soz:wpaper:0609

Access Statistics for this paper

More papers in SOI - Working Papers from Socioeconomic Institute - University of Zurich Contact information at EDIRC.
Bibliographic data for series maintained by Severin Oswald ().