Restructuring regulation of the rail industry for the public interest

摘要: Throughout the world, rail industry historically has been one of most extensively regulated all sectors. Price, entry, exit, financial structure, accounting methods, vertical relations, and operating rules have subject to some form government control. The public utility paradigm regulation applied on assumption that economic characteristics preclude competitive organization or need for market responsiveness. In past three decades, however, policymakers economists become increasingly critical traditional industry. It is generally accepted in markets where carriers seek meet demand, there often effective competition, restrictions structure conduct firms this impose considerable costs society. Misguided regulatory policies blamed misallocation freight traffic among competing modes transport, excess capacity, excessive costs, poor investment decisions. Regulatory controls also shouldered much blame condition railroads, deterioration plant, suppression delay cost-reducing innovations, mediocre quality service. authors suggest principles restructuring railroad - indeed, orientation entries sake interest. Much can be learned, they contend, from applying industrial analysis To assess implications aimed at rate infrastructure, it essential understand nature technology, demand Government's role relation behavior should based explicitly technological realities marketplace. say along lines putting more emphasis marketing effectiveness will result a profitable railway with better chance covering its commercial services. Changing basis noncommercial services as make those fulfilling policy objectives, eliminate an insuperable drain revenues condemns rails inadequate investment, cross-subsidies difficult compete against other transport.