An Analysis of the Potential for On-track Competition in the British Passenger Rail Industry

Abstract

This paper undertakes a systematic review of the potential for on-track competition in the passenger railway industry in Great Britain, and concludes that some such competition is likely. A simulation model is developed and tested on an inter-city rail line. The findings in respect of different forms of competition are examined. It is concluded that on-track competition is unlikely to promote economic efficiency unless it leads to cost reductions and/or product differentiation.

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