The transaction cost economics of railways

摘要: This paper uses transaction cost economics to consider the advantages and disadvantages of vertical separation railway infrastructure operations. Advantages considered include a greater degree specialisation, scope for competition between operators transparency capital costs path allocation procedures. Disadvantages, associated primarily with abuse monopoly power, are at strategic, tactical operational levels. Throughout it is argued that structure rail industry best viewed as being trade off production governance costs. Given high specificity assets, some form integration desirable. seems be supported by recent experiences Railtrack in Britain. (A)