THE COST STRUCTURE OF THE JAPANESE RAILWAY INDUSTRY: THE ECONOMIES OF NETWORK DENSITY AND OF SCOPE AND THE COST GAP BETWEEN JAPAN'S REGIONAL RAILWAYS AFTER PRIVATIZATION

It is said that the privatization of the Japanese National Railway is a success because management, productivity, and service have improved. However, as expected, the gap of both management and productivity tends to widen between the larger main island Japan Railway services (JRs) and the three smaller island JRs. In this paper, we examine the cost structure of the six JRs after the privatization. The main conclusions we reach are as follows: first, the economies of density exist in both the incumbent railway service and the Shinkansen service; second, there is no conclusive evidence to show that the economies of scope exist between them; third, the cost gap between the main island JRs and the three island JRs is large; and fourth, the cost gaps between the three island JRs are also large. (A)

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    Istituti Editoriali e Poligrafici Internazionali

    Via Ruggero Bonghi, 11/B
    Rome,   Italy  00184
  • Authors:
    • IDA, T
    • SUDA, M
  • Publication Date: 2004-2

Language

  • English

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Filing Info

  • Accession Number: 00973345
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Files: ITRD
  • Created Date: May 6 2004 12:00AM