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| Author: | Bitzan, J.D. |
| Title: | Railroad costs and competition: the implications of introducing competition to railroad networks |
| Journal: | Journal of Transport, Economics and Policy
2003 : MAY, VOL. 37:2, p. 201-225 |
| Index terms: | Competition Costs Freight transport Rail transport USA |
| Language: | eng |
| Abstract: | The cost implications of competition over existing US freight rail lines is examined by testing for the condition of cost subadditivity. There are two findings: 1) there are economies association with vertically integrated roadway maintenance and transport, suggesting that separating the two would result in increased resource cots and 2) railroads are natural monopolies in providing transport services over their own network, suggesting that multiple-firm competition over such a network would result in increased resource costs. |
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