Should Railways Be Unbundled? The Entrepreneurial Competition Process in the Central and East European Railway Industry
Competition - Theoretical and Practical Aspects, Jihlava: College of Polytechnics Jihlava, 2010
9 Pages Posted: 31 Oct 2010 Last revised: 7 Aug 2011
Date Written: January 1, 2009
Should railways be unbundled in Central and Eastern Europe? The Central and East European railways are noncompetitive against other means of transport. Commission of the European Communities has therefore suggested unbundling the railway operations and infrastructure. This proposition is however based on information which in reality is impossible to collect. In this paper, we have applied the theoretical assumptions of unbundling public policy to criticize the proposal of the Commission of the European Communities and provided a theoretical explanation based on the entrepreneurial competition process. The appropriate public policy targeted to competition of railways in Central and Eastern Europe is also suggested.
Keywords: Entrepreneurial competition process, natural monopoly, perfect competition, unbundling of railways
JEL Classification: B53, D23
Suggested Citation: Suggested Citation