The Privatisation of British Rail: a Track Record

Date
1997-09
Authors
Dnes, Antony William
Journal Title
Journal ISSN
Volume Title
Publisher
Economic Review (UK)
Abstract
The privatization of railroads in the United Kingdom has involved a subsidy for the new companies providing services, and has been carried out in a complex way. Passengers services have been separated from the maintenance of stations and track. Bidders for passenger service operations have mainly been bidding for subsidies. Franchisees are under pressure to maximise profits when railroad services are profitable. Franchisees may have monopoly power so use monopoly pricing, which leads to a net loss for society. Loss-making services involve a subsidy which may not be set at the best level, but bidding may still allow costs to be cut compared to nationalization.
Description
Keywords
British Rail -- Mergers, acquisitions and divestments, Privatization -- United Kingdom, Railroads -- Mergers, acquisitions and divestments, United Kingdom -- Transportation policy
Citation
Dnes, Antony. "The Privatisation of British Rail: A Track Record." Economic Review (UK), no. 1, 1997, p. 4.
DOI
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