Restructuring Regulation of the Railroad Industry
Author: Ioannis Kessides and Robert Willig Date: 10/1/1995 (PDF, 200KB)
The rail industry has been one of the most heavily regulated sectors in nearly all countries. But the old public utility paradigm of government regulation is now being blamed for the shaky financial position of most railroads, the deterioration of rail plant, the lack of innovation in the industry, and the poor quality of services. Ioannis Kessides and Robert Willig outline a new set of regulatory principles--constrained market pricing--that addresses the industry's central regulatory problem, its mix of competitive and monopoly elements.