Vertical divestiture as a competitive strategy: the case of railway passenger transport reform in Russia

We consider the vertical access model of the rail passenger sector in Russia and formally analyse the attractiveness of complete vertical divestiture as an option for the future reform steps. The integrated infrastructure company (RZD) serves also the passenger market and is engaged in sabotage in order to disadvantage existing or potential rivals of its downstream affiliate Federal Passenger Directorate. We found that the welfare gain from the vertical divestiture may depend on the nature and toughness of downstream competition and be irrelevant to the size of scope economies and maximum level of sabotage. (a) For the covering entry of this conference, please see ITRD abstract no. E215911.

• Authors:
  • DEMENTIEV, A
• Publication Date: 2007-8

Language

• English

Media Info

• Pagination: 27-43 [WORKSHOP 6C]
• Serial:
  • INTERNATIONAL CONFERENCE ON COMPETITION AND OWNERSHIP IN LAND PASSENGER TRANSPORT, 10TH, 2007, HAMILTON ISLAND, QUEENSLAND, AUSTRALIA
  • Publisher: University of Sydney

Subject/Index Terms

• TRT Terms: Competition; Conferences; Economics; Management; Private enterprise; Private transportation; Public transit; Railroad transportation; Transportation
• ITRD Terms: 155: Administration; 235: Competition; 8525: Conference; 263: Economics of transport; 9118: Private; 746: Private transport; 744: Public transport; 1173: Rail bound transport; 1155: Transport
• Subject Areas: Administration and Management; Economics; Transportation (General); I10: Economics and Administration;

Filing Info

• Accession Number: 01094997
• Record Type: Publication
• Source Agency: ARRB
• Files: ITRD, ATRI
• Created Date: Apr 25 2008 8:19AM