Which access to which assets for an effective liberalization of the railway sector?

Author:

Bougette Patrice1ORCID,Gautier Axel2,Marty Frédéric3

Affiliation:

1. Université Côte d’Azur, CNRS, GREDEG, France

2. HEC Liège, LCII, University of Liège, Belgium; CORE, UCLouvain, Belgium; CESifo, Germany

3. Université Côte d’Azur, CNRS, GREDEG, France; OFCE, Sciences Po. Paris and CIRANO, Montréal Canada

Abstract

In the European rail industry, to enable competition in the market, entrants should be granted access to a large set of complementary services, beyond access to the tracks. For an efficient and effective entry, temporary access to quasi-essential complementary assets like rolling stock, mechanical maintenance workshops, data, schedules, etc. is required. In the liberalized rail sector, several observed anticompetitive practices involve distorted access to these quasiessential facilities. Therefore, competition agencies must deal with litigation between the incumbent and new entrants. Most cases have been settled, resulting in commitments from the incumbent. We argue that such transitory and case-by-case remedies fail to produce favorable conditions for a secure and efficient entry. Thus, we propose to systematize such remedies through asymmetric and enduring ex-ante regulation.

Publisher

SAGE Publications

Subject

Management Science and Operations Research,General Business, Management and Accounting

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