Market Size and Vertical Structure in the Railway Industry

Matsushima, Noriaki; Mizutani, Fumitoshi

Institute of Social and Economic Research Discussion Papers, 2011, 820

Number of Access:241（2025-07-25 20:27 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/13739

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Title
Market Size and Vertical Structure in the Railway Industry
Creator
NRID
1000080334879 1000080334879
ORCID
0000-0002-7865-3875 0000-0002-7865-3875
researchmap permalink
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Scopus Author ID
7005645778 7005645778
CreatorName
Matsushima, Noriaki
NRID
1000060263365 1000060263365
CreatorName
Mizutani, Fumitoshi
Subject
vertical integration,
railway industry
market size
vertical coordination
Abstract
We provide a theoretical framework to discuss the relation between market size andvertical structure in the railway industry. The framework is based on a simple downstreammonopoly model with two input suppliers, labor forces and the rail infrastructure firm. Theoperation of the downstream firm (i.e., the train operating firm) generates costs on the railinfrastructure firm. We show that the downstream firm with a larger market size is morelikely to integrate with the rail infrastructure firm. This is consistent with the phenomenonin the railway industry.
Publisher
The Institute of Social and Economic Research, Osaka University
Source Title
Institute of Social and Economic Research Discussion Papers
Volume (Issue)
820
Date of Issued
2011-10
Language
English
Handle URL
https://hdl.handle.net/11094/13739
Relation.references
URI
https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2011/DP0820.pdf
Access Rights
metadata only access
Category
ディスカッション／ワーキング・ペーパー DP/WP
Institute of Social and Economic Research Discussion Papers