[en] 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 also required. In the liberalized rail sector, several observed anticompetitive practices involve distorted access to these quasi-essential 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.
Research center :
LCII - Liège Competition and Innovation Institute - ULiège
Disciplines :
Microeconomics
Author, co-author :
Bougette, Patrice; Université Côte d’Azur
Gautier, Axel ; Université de Liège - ULiège > HEC Liège : UER > UER Economie : Economie industrielle
Marty, Frederic; Université Côte d’Azur
Language :
English
Title :
Which access to which assets for an effective liberalization of the rail sector
ARAFER. (2018). L’ouverture à la concurrence du transport ferroviaire de voyageurs en France. Report. https://www.arafer.fr/actualites/ouverture-a-la-concurrence-ferroviaire-larafer-alimente-le-debat-et-reaffirme-le-role-essentiel-de-son-avis-conforme-sur-la-tarification-ferroviaire
ART. (2021). Rapport annuel sur le marché français du transport ferroviaire en 2019, January. https://www.autorite-transports.fr/wp-content/uploads/2021/01/bilan-ferroviaire-2019.pdf
Bergantino A. S., Capozza C., Capurso M., (2015). The impact of open access on intra- and inter-modal rail competition. A national level analysis in Italy. Transport Policy, 39, 77–86.
Beria P., Redondi R., Malighetti P., (2016). The effect of open access competition on average rail prices. The case of Milan-Ancona. Journal of Rail Transport Planning & Management, 6, 271–283.
Beria P., Tolentino S., Bertolin A., Filippini G., (2019). Long-distance rail prices in a competitive market. Evidence from head-on competition in Italy. Journal of Rail Transport Planning & Management, 6 September 2019. https://doi.org/10.1016/j.jrtpm.2019.100144
Besanko D., Cui S., (2016). Railway restructuring and organizational choice: Network quality and welfare impacts. Journal of Regulatory Economics, 50(2), 164–206.
Besanko D., Cui S., (2017). Erratum to: Railway restructuring and organizational choice: Network quality and welfare impacts (J Regul Econ, (2016), 50, (164–206), 10.1007/S11149-016-9309-3). Journal of Regulatory Economics, 51(1), 119–121.
Besanko D., Cui S., (2019). Regulated versus negotiated access pricing in vertically separated railway systems. Journal of Regulatory Economics, 55(1), 1–32.
Bourreau M., Doğan P., Manant M., (2010). A critical review of the “ladder investment” approach. Telecommunications Policy, 34(11), 683–696.
Cantos P., Manuel Pastor J., Serrano L., (2012). Evaluating European railway deregulation using different approaches. Transport Policy, 24(November), 67–72.
Cascetta E., Coppola P., (2014). Competition on fast track: An analysis of the first competitive market for HSR services. Procedia—Social and Behavioral Sciences, 111(February), 176–185.
Castaldo A., Antonio N., (2007). Essential facility access in Europe: Building a test for antitrust policy. Review of Law and Economics, 3(1), 83–110.
Cave M. (2006). Encouraging infrastructure competition via the ladder of investment. Telecommunications Policy, 30, 223–237.
Cherbonnier F., Ivaldi M., Muller-Vibes C., Van Der Straeten K., (2017). Competition for versus in the market of long-distance passenger rail services. Review of Network Economics, 16(2), 203–238.
Cowie J. (2015). Does rail freight market liberalisation lead to market entry? A case study of the British privatisation experience. Research in Transportation Business & Management, 14(March), 4–13.
Crozet Y. (2017). Rail freight development in Europe: How to deal with a doubly-imperfect competition? Transportation Research Procedia, 25(January), 425–442.
Deakin S., Pratten S., (1999). Reinventing the market? Competition and regulatory change in broadcasting. Journal of Law and Society, 26(3), 323–350.
De Hauteclocque A., Marty F., Pillot J., (2011). The essential facilities doctrine in European competition policy: The case of the energy sector. In Jean-Michel G., Finon D., de Hauteclocque A., (Eds.), Competition, contracts and electricity markets: A new perspective (pp. 259–292). Edward Elgar.
European Commission. (2019). Remaining challenges for EU-wide integrated ticketing and payment systems, Final report. Directorate-General for Mobility and Transport.
European Commission. (2021). 7th Report on monitoring development of the rail market. Rail Market Monitoring (RMMS) report, 13.01.2021, and its Accompanying Commission Staff Working Document. Directorate-General for Mobility and Transport. https://ec.europa.eu/transport/modes/rail/market/market_monitoring_en
Fröidh O., Byström C., (2013). Competition on the tracks—Passengers’ response to deregulation of interregional rail services. Transportation Research Part A: Policy and Practice, 56(October), 1–10.
Gaffard J.-L., Quéré M., (2006). What’s the aim for competition policy: Optimizing market structure or encouraging innovative behaviors. Journal of Evolutionary Economics, 16(1–2), 175–187.
Gómez-Ibáñez J. A., de Rus G., (Eds.) (2006). Competition in the Railway Industry. Cheltenham, UK: Edward Elgar Publishing.
Gutiérrez-Hita C., Ruiz-Rua A., (2019). Competition in the railway passenger market: The challenge of liberalization. Competition and Regulation in Network Industries, 20(2), 164–183.
Henry D. (2019). Competition law in the railway transport sector: An overview of EU and national case law. e-Competitions Special Issue Transport (rail), 6 June 2019.
Ivaldi M., Pouyet J., (2018). Eliciting the regulation of an economic system: The case of the French rail industry. Transport Policy, 62(February), 21–30.
Kao T., Menezes F. M., Quiggin J., (2014). Optimal access regulation with downstream competition. Journal of Regulatory Economics, 45(1), 75–93.
Knieps G. (2013). Competition and the railroads: A European perspective. Journal of Competition Law and Economics, 9(1), 153–169.
Król M., Taczanowski J., Kołoś A., (2018). The rise and fall of Interregio. Extensive open-access passenger rail competition in Poland. Research in Transportation Economics, 72, 37–48.
Laffont J.-J., Tirole J., (1999). Competition in telecommunications (Munich Lectures in Economics). MIT Press.
Laroche F., Sys C., Vanelslander T., Van de Voorde E., (2017). Imperfect competition in a network industry: The case of the European rail freight market. Transport Policy, 58(August), 53–61.
Marzano V., Tocchi D., Papola A., Aponte D., Simonelli F., Cascetta E., (2018). Incentives to freight railway undertakings compensating for infrastructural gaps: Methodology and practical application to Italy. Transportation Research Part A: Policy and Practice, 110, 177–188.
McNulty R., (2011). Realising the potential of rail in Great Britain. An independent report of a study chaired by Sir Roy McNulty and commissioned by the Secretary of State for Transport.
Meaney A. (2015). Non-discriminatory access beyond the tracks. In Matthias F., Messulam P., (Eds.), Rail economics, policy and regulation in Europe (pp. 303–322). Edward Elgar.
Nash C. A., Smith A. S. J., van de Velde D., Mizutani F., Uranishi S., (2014). Structural reforms in the railways: Incentive misalignment and cost implications. Research in Transportation Economics, 48(December), 16–23.
Nash C., Smith A., Crozet Y., Link H., Nilsson J.-E., (2019). How to liberalise rail passenger services? Lessons from European experience. Transport Policy, 79, 11–20.
Odale A., Padilla J., (2004). From state monopoly to the “investment ladder”: Competition policy and the NRF. In Cave M., (Ed.), The pros and cons of antitrust in deregulated markets (pp. 51–77). Swedish Competition Authority.
Paha J., Rompf D., Warnecke C., (2013). Customer choice patterns in passenger rail competition. Transportation Research Part A: Policy and Practice, 50, 209–227.
Perennes P., (2017). Open access for rail passenger services in Europe: Lesson learnt from forerunner countries. Transportation Research Procedia, 25, 358–367.
Pittman R. (2007). Options for restructuring the state-owned monopoly railway. In Dennis S., Talley W., (Eds.), Railroad economics (pp. 179–198). Elsevier B.V.
Ridyard D., (2004). Compulsory access under EU competition law: A new doctrine of “convenient facilities” and the case for price regulation. European Competition Law Review, 11, 669–674.
Riordan M. H., Williamson O. E., (1985). Asset specificity and economic organization. International Journal of Industrial Organization, 3(4), 365–378.
Slack B, Vogt A., (2007). Challenges confronting new traction providers of rail freight in Germany. Transport Policy, 14(5), 399–409.
Tomeš Z., Fitzová H., (2019). Does the incumbent have an advantage in open access passenger rail competition? A case study on the Prague-Brno line. Journal of Rail Transport Planning & Management, 12, 100–140.
Tomeš Z., Kvizda M., Nigrin T., Seidenglanz D., (2014). Competition in the railway passenger market in the Czech Republic. Research in Transportation Economics, 48, 270–226.
Vigren A., (2017). Competition in Swedish passenger railway: Entry in an open access market and its effect on prices. Economics of Transportation, 11–12(September 2016), 49–59.
Vogelsang I. (2012). Incentive Regulation, Investments and Technological Change. In Faulhaber GR, Madden G., Petchey J., (Eds.), Regulation and the Performance of Communication and Information Networks, edited by Gerald R. Edward Elgar Publishing. https://doi.org/10.4337/9781781007143.00011.
Yvrande-Billon A., Ménard C., (2005). Institutional constraints and organizational changes: The case of the British rail reform. Journal of Economic Behavior & Organization, 56(4), 675–99.