Competition on the Railway Market in a Segment of Public Service Obligations in Terms of Effectiveness: Study in V4 Countries
Anna Dolinayova, Igor Domeny
Keywords:
railway market, competition, public service obligation, compensation, effectiveness
Abstract:
Since the introduction of new European Union legislation seeking to establish a single European
railway area and increase the railway sector’s competitiveness, competition has also become a
reality in this, until then, monopoly market. In addition to allowing open access to the railway
market with freight and passenger services, competition in the regulated part of the market
has been increasing, specifically in the segment of public passenger transport services. Public
tendering for providing public services has increased the quality of services for passengers and
contracting authorities; however, the question remains whether this model of awarding these
services is also effective from a socioeconomic viewpoint. This study focused on evaluating
contracting authorities of public services in the Visegrád-4 countries regarding public spending
effectiveness. Based on the chosen model inputs and outputs related to performance and value
indicators of public service contracts, we calculate individual contracting authorities’ relative
effectiveness using nonparametric data envelopment analysis (DEA) models. We subsequently
tested assumptions of the difference in effectiveness according to awarding services, individual
countries or ownership of railway undertakings. We came to the conclusion that it is not possible
to confirm that public tenders in V4 countries significantly increased the effectiveness of public
spending in comparison with direct awards or other ways of awarding PSO. Discussions on the
main results and research limitations are also part of this paper.
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 Competition on the Railway Market in a Segment of Public Service Obligations in Terms of Effectiveness: Study in V4 Countries [PDF file] [Filesize: 732.28 KB]
 10.7441/joc.2022.03.03
Dolinayova, A., & Domeny, I. (2022). Competition on the Railway Market in a Segment of Public Service
Obligations in Terms of Effectiveness: Study in V4 Countries. Journal of Competitiveness, 14(3), 41–58. https://doi.org/10.7441/joc.2022.03.03
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