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The Deregulation of the Swedish Railway - On Track or Derailed?

Reimers, Axel LU (2023) NEKH03 20231
Department of Economics
Abstract
Since 2010, the Swedish railway has been open to competition for passenger train traffic. Despite extensive deregulations, the state-owned enterprise and previous monopoly Statens Järnvägar has managed to retain its previous position as the reigning actor of the Swedish railway. This thesis aims to analyse an incumbent firm's effect on an industry, targeted with regulatory interventions. It will be done by examining the current competition on Sweden's two most heavily burdened routes. The Structure-Conduct-Performance approach of the studies in industrial organisations is used to determine the effectiveness of the competitive industry. The core of the research is based on data regarding different departures on the routes
examined in... (More)
Since 2010, the Swedish railway has been open to competition for passenger train traffic. Despite extensive deregulations, the state-owned enterprise and previous monopoly Statens Järnvägar has managed to retain its previous position as the reigning actor of the Swedish railway. This thesis aims to analyse an incumbent firm's effect on an industry, targeted with regulatory interventions. It will be done by examining the current competition on Sweden's two most heavily burdened routes. The Structure-Conduct-Performance approach of the studies in industrial organisations is used to determine the effectiveness of the competitive industry. The core of the research is based on data regarding different departures on the routes
examined in tables, charts and with regression following the Ordinary Least Squares method. These are further analysed with the theoretical approach to demonstrate how factors such as price and quantity are linked to the strategic behaviour of firms. According to the results, SJ has successfully preserved its previous monopoly market power despite deregulation and
increased competition. This may result from incorrectly implemented regulatory reforms or SJ strategically preventing rival firms from properly establishing themselves. (Less)
Please use this url to cite or link to this publication:
author
Reimers, Axel LU
supervisor
organization
course
NEKH03 20231
year
type
M2 - Bachelor Degree
subject
keywords
Deregulation, Swedish railway, Structure-Conduct-Performance approach, Strategic interaction, Entry barriers
language
English
id
9120555
date added to LUP
2024-01-22 15:48:36
date last changed
2024-01-22 15:48:36
@misc{9120555,
  abstract     = {{Since 2010, the Swedish railway has been open to competition for passenger train traffic. Despite extensive deregulations, the state-owned enterprise and previous monopoly Statens Järnvägar has managed to retain its previous position as the reigning actor of the Swedish railway. This thesis aims to analyse an incumbent firm's effect on an industry, targeted with regulatory interventions. It will be done by examining the current competition on Sweden's two most heavily burdened routes. The Structure-Conduct-Performance approach of the studies in industrial organisations is used to determine the effectiveness of the competitive industry. The core of the research is based on data regarding different departures on the routes
examined in tables, charts and with regression following the Ordinary Least Squares method. These are further analysed with the theoretical approach to demonstrate how factors such as price and quantity are linked to the strategic behaviour of firms. According to the results, SJ has successfully preserved its previous monopoly market power despite deregulation and
increased competition. This may result from incorrectly implemented regulatory reforms or SJ strategically preventing rival firms from properly establishing themselves.}},
  author       = {{Reimers, Axel}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Deregulation of the Swedish Railway - On Track or Derailed?}},
  year         = {{2023}},
}