Resource title

The new british railways structure - A transaction cost economics analysis

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Resource description

The 1993 reform of rail transport in Great Britain led to an outright break-up of theBritish Rail vertically integrated monopoly. All railway activities have been isolatedand divided among private operators whose relationships are determined by contracts.This paper examines the relevance of a vertical separation between train operationsand rolling stock ownership and the stability of this new structure. Transaction costtheory, which mainly concentrates on vertical integration and contractual coordinationissues, provides a relevant analytical framework.It is argued that the disintegrated governance structure is not suitable to the features ofthe relationships between lessors and lessees of rolling stock. Moreover, thecoordinative mechanisms of existing leases cannot solve the problems caused byvertical separation. Therefore, operators have adapted the structure and change thecharacteristics of the rolling stock market transactions.

Resource author

Anne Yvrande

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Resource language

eng

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application/pdf

Resource resource URL

http://hdl.handle.net/10398/8081

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