This paper investigates the effects of contractual arrangements of firms operating in a regulated environment on their investment behaviour. It studies the interaction between repeated auctions of rail franchises of different lengths, uncertainty and incentives for investment in rolling stock,...

The unbundling of railways in Britain has been heavily criticised as undermining the passenger rail system. Economic theory suggests that structural separation and short-lived contracts hinder incentives to invest in relation-specific assets. This paper consitutes an initial investigation of...

This paper contributes to the debate on investment in transport infrastructure and the allocation of public funds between road and railway projects. We model the two options and provide a consistent framework to appraise investment in typical new inter-urban road and rail projects. Our results...