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On the Economics of Restructuring World Railways, with a Focus on Russia

  • Russell Pittman EMAIL logo
From the journal Man and the Economy


The lecture opens with a discussion of the modern history of economists’ treatment of network industries: from cost-of-service regulation through incentive regulation to vertical restructuring. This history is then applied to the freight railways sector, followed by a discussion of the current state of the rail restructuring debate – what we term the European versus the American model, or vertical versus horizontal separation – first generally and then in the Russian Federation. Finally, we seek to derive lessons relevant to Russia from both the empirical literature and the results of recent reform policies implemented in the United States and the European Union.

Corresponding author: Russell Pittman, U.S. Department of Justice, Washington, D.C., USA, E-mail:

Russell Pittman: Director of Economic Research, Antitrust Division, U.S. Department of Justice, and visiting professor, Kyiv School of Economics. The views expressed are not purported to reflect those of the U.S. Department of Justice. This article is the revised transcript of a lecture presented virtually at the Higher School of Economics, Moscow, for the session of the 21st International Academic Conference session on “The Economics and Regulation of the Railway Industry”. The author is grateful for helpful comments on a previous draft by John Mayo and the editor.


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Received: 2020-11-06
Accepted: 2020-11-06
Published Online: 2020-11-24

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