Institute of Transport Studies, University of Leeds
Abstract
The purpose of this paper is to examine the relevance of economic theory to the rail privatisation proposals contained in the Railways Act 1993. After a review of the latest rail privatisation literature four major themes emerged:
(1) Contestability and Barriers to Entry.
(2) Franchising.
(3) Vertical Integration.
(4) Horizontal Integration.
Following a short review of the rail privatisation proposals the paper presents each theme in the context of the proposals. In conclusion, we highlight a number of future issues which will require monitoring and research in the future. In particular, we identify a number of hypotheses, put forward by both those in favour and against the Government's proposals, that should be tested
