Review of Economic Studies Vol. 51 No. 4 1984
Pricing and Investment Policies in a System of Competitive Commuter Railways
Abstract
This paper develops a simple spatial equilibrium model of a city served by competing commuter railways and analyses the effects of different transportation policies on their pricing and investment decisions. It is shown that a system of competitive railway companies does not achieve the optimal allocation. We then examine whether or not three types of government intervention, i.e. subsidies to railway companies, a rate-of-return regulation, and the ownership of residential land by railway companies, can achieve the optimal allocation.
- DOI
- 10.2307/2297785
- Volume
- 51
- Issue
- 4
- Pages
- 665-681
- Language
- en
- Sources
- openalex crossref