Priority rules versus scarcity premiums in rail markets

  • The regulation of rail network access is a key component of the EU policy that aims to strengthen rail markets. Two specific regulations are proposed: (i) a priority for long-distance (freight) services and (ii) a scarcity premium. Based on a congested network with two rail links, numerical simulations demonstrate that total surplus can be greater under the priority rule, which depends on the network charge per train-kilometer. Consumer surplus, on the other hand, is always greater under the priority rule, while fixed network-cost recovery is easier to achieve if a scarcity premium exists.

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Metadaten
Author:Achim I. Czerny, Kay Mitusch, Andreas Tanner
URN:urn:nbn:de:hbz:992-opus4-4570
Series (Serial Number):WHU – Working Paper Series in Economics (WP 10/03)
Document Type:Working Paper
Language:English
Date of Publication (online):2017/06/26
Release Date:2017/06/26
Tag:Knappheitsprämie; Netzdisposition; Prioritätsregeln; Schienenverkehrsmärkte; Stauung
Congestion; Network allocation; Priority rules; Rail markets; Scarcity premium
Page Number:31
Institutes:WHU Management Group / Chair of Organization Theory
JEL-Classification:D Microeconomics / D4 Market Structure and Pricing / D42 Monopoly
D Microeconomics / D4 Market Structure and Pricing / D45 Rationing; Licensing
H Public Economics / H4 Publicly Provided Goods / H49 Other
L Industrial Organization / L9 Industry Studies: Transportation and Utilities / L92 Railroads and Other Surface Transportation
R Urban, Rural, and Regional Economics / R4 Transportation Systems / R41 Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
R Urban, Rural, and Regional Economics / R4 Transportation Systems / R48 Government Pricing; Regulatory Policies; Transportation Planning
Licence (German):Copyright for this publication