We provide a theoretical framework to discuss the relation between market size and vertical structure in the railway industry. The framework is based on a simple downstream monopoly model with two input suppliers, labor forces and the rail infrastructure firm. The operation of the downstream...

This paper empirically analyses whether full ownership separation strengthens rail in comparison with other transport modes – a major goal of European and national transport policies. Data from nine European countries in the period 1994-2009 are evaluated, with the end result that the positive...