New article by Steffen Juranek

1 January 2016 12:51

(updated: 7 September 2017 12:32)

New article by Steffen Juranek

The article "Creating a National Champion: International Competition and Unbundling in Rail Transportation" by Steffen Juranek has been published in the Journal of Transport Economics and Policy (JTEP).

The article "Creating a National Champion: International Competition and Unbundling in Rail Transportation" by Steffen Juranek has been published in the Journal of Transport Economics and Policy (JTEP).

Abstract:

This article investigates the incentives to unbundle operations and infrastructure in the railway industry in a two-country model from the viewpoint of national governments. The analysis shows that the decision to unbundle institutionally or organisationally with separated accounts depends crucially on the importance of cross-border transportation. If cross-border transportation is sufficiently important, national governments choose accounting separation. However, for low-efficiency gains within a bundled firm, national governments are stuck in a Prisoner's Dilemma and would be better off coordinating on institutional separation. This result justifies major policy initiatives of the European Union and explains the behaviour of national governments.