Affuso, Luisa; Newbery, David. 'The impact of structural and contractual arrangements on a vertically separated railway'. - Economic & Social Review, Vol. 33, No. 1, Spring, 2002, pp. 83-92, Dublin: Economic & Social Research Institute
The unbundling of railways in Britain has been heavily criticised as undermining the
passenger rail system. Economic theory suggests that structural separation and short-lived contracts hinder incentives to invest in relation-specific assets. This paper consitutes an initial investigation of this proposition. It investigates whether the investment pattern of the rail passenger franchisees responds to structural and contractual characteristics using a unique panel of data on the privatised railways in Britain. Its findings suggest that unbundling and competition for franchises combined with commercial objectives can provide strong incentives towards better performance, as is the case for investment behaviour.
Please note: There is a known bug in some browsers that causes an
error when a user tries to view large pdf file within the browser window.
If you receive the message "The file is damaged and could not be
repaired", please try one of the solutions linked below based on the
browser you are using.
Items in TARA are protected by copyright, with all rights reserved, unless otherwise indicated.