Regulatory Capture in Railways Industry: A Short Survey
Firm and Competitive Environment, 2010, Brno: MUAF in Brno, 2010
7 Pages Posted: 19 Apr 2011 Last revised: 25 Apr 2011
Date Written: March 11, 2010
This paper shortly surveys theoretical and empirical literature related to regulatory capture in railway industry. In the first section, the survey summarizes the main contributions to the general theoretical framework referred to as the theory of regulation or the regulatory capture theory. Since the low elasticity of demand for railways increases the profits from regulatory capture, the railway industry is a good example of the summarized theoretical argument. To further analyze this example, the second section presents a short survey of regulatory capture in the railway industry.
Keywords: Railway industry, regulatory capture, theory of regulation
Suggested Citation: Suggested Citation