When competitive tendering seems too risky. Evidence from regional railways in Poland

This paper analyses the emergence of region-owned local operators to counteract opportunistic behaviour of the incumbent on the market of regional rail services after competitive tendering failed in Poland. Six local operators have been set up so far, their combined market share is significant (54% in passengers, 44.5% in passenger-km) and growing. The prior flawed liberalisation of regional rail market in Poland resulted in substantial barriers to entry for external competitors and strong incentives for incumbent’s opportunistic behaviour toward regional authorities. Main reasons for regional authorities to vertically integrate are lowering transaction costs of providing rail public services and eliminating incumbent’s market power.

• Record URL:
  • http://hdl.handle.net/2123/17460
• Authors:
  • Krol, M
• Conference:
  • International Conference on Competition and Ownership in Land Passenger Transport, 15th, 2017, Stockholm, Sweden
• Publication Date: 2017

Language

• English

Media Info

• Pagination: 17p
• Monograph Title: Thredbo 15: International Conference on Competition and Ownership in Land Passenger Transport, 2017, Stockholm, Sweden

Subject/Index Terms

• TRT Terms: Bids; Economics; Policy; Railroad transportation; Regions; Risk analysis
• Uncontrolled Terms: Transport costs
• Geographic Terms: Poland
• ATRI Terms: Competition; Policy; Rail transport; Region; Risk analysis; Tender; Transport costs; Transport economics
• Subject Areas: Economics; Policy; Railroads;

Filing Info

• Accession Number: 01688654
• Record Type: Publication
• Source Agency: ARRB
• Files: ATRI
• Created Date: Dec 17 2018 11:58AM