Privatisation and the quality of rail services

P. K. Else and T. J. James

Transportation Research Part A: Policy and Practice, 1995, vol. 29, issue 6, 387-400

Abstract: Using the concept of generalised costs to reflect quality in rail services, we consider the level of provision and quality of these services in the various forms they may take in a privatised environment within a model where we assume linear and separable demand and cost functions for analytical simplicity. Using the Pareto-efficient output and quality outcomes under a fully integrated system for reference (as well as those for a fully integrated profit-maximising monopolist) we show that if either bilateral monopoly or complementary monopoly emerge as a market structure the output of train services and their quality will generally fall. In the case of the emergence of both bilateral monopoly and complementary monopoly our analysis again suggests poor welfare outcomes. The implication that can be drawn from our analysis is that a regulator of a privatised rail system faces some severe problems if she is to attain the appropriate welfare targets.

Date: 1995
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/0965-8564(95)00007-B
Full text for ScienceDirect subscribers only

Related works:
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:eee:transa:v:29:y:1995:i:6:p:387-400

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Catherine Liu ().