2014RePEc: Research Papers in EconomicsRequires access

THEORETICAL AND VIABLE CHARGING MODELS FOR RAILWAY INFRASTRUCTURE ACCESS: AN EUROPEAN SURVEY

Ugo Arrigo, Giacomo Di Foggia

Open publisher page 5 citations

Abstract

This paper examines the pricing models for the use of the railway infrastructure in some European countries. A regulatory environment shall guarantee fair access to essential facilities, specifically in presence of vertically related markets and the existence of an essential facility provided only by one firm. This paper considers two pricing models classified according different principles: the model of marginal cost and the model of full cost. Given that the effective traffic does not influence the relevant fixed costs of the networks, managers will have expected curves of marginal cost firmly under the curves of average cost, and as a result, the current trade-off between the optimal use of the network and the optimal coverage of the costs. This paper states that countries where a marginal cost model is in use, the railway system has a smaller impact on public spending.

Open-access reader

About this research paper

What this paper is about

This paper examines the pricing models for the use of the railway infrastructure in some European countries. A regulatory environment shall guarantee fair access to essential facilities, specifically in presence of vertically related markets and the existence of an essential facility provided only by one firm. This paper considers two pricing models classified according different principles: the model of marginal cost and the model of full cost. Given that the effective traffic does not influence the relevant fixed costs of the networks, managers will have expected curves of marginal cost firmly under the curves of average cost, and as a result, the current trade-off between the optimal use of the network and the optimal coverage of the costs. This paper states that countries where a marginal cost model is in use, the railway system has a smaller impact on public spending.

Why it matters

OpenAlex reports 5 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

This paper examines the pricing models for the use of the railway infrastructure in some European countries. A regulatory environment shall guarantee fair access to essential facilities, specifically in presence of vertically related markets and the existence of an essential facility provided only by one firm. This paper considers two pricing models classified according different principles: the model of marginal cost and the model of full cost. Given that the effective traffic does not influence the relevant fixed costs of the networks, managers will have expected curves of marginal cost firmly under the curves of average cost, and as a result, the current trade-off between the optimal use of the network and the optimal coverage of the costs. This paper states that countries where a marginal cost model is in use, the railway system has a smaller impact on public spending.

Key concepts: Marginal cost, Business, Economics, Environmental economics, Microeconomics, Industrial organization, Operations research, Engineering

Related papers

Back to paper searchBrowse research topicsOriginal source
THEORETICAL AND VIABLE CHARGING MODELS FOR RAILWAY INFRASTRUCTURE ACCESS: AN EUROPEAN SURVEY — Research Paper | ScholarLens