Should Railways Be Unbundled? The Entrepreneurial Competition Process in the Central and East European Railway Industry

Should railways be unbundled in Central and Eastern Europe? The Central and East European railways are noncompetitive against other means of transport. Commission of the European Communities has therefore suggested unbundling the railway operations and infrastructure. This proposition is however based on information which in reality is impossible to collect. In this paper, we have applied the theoretical assumptions of unbundling public policy to criticize the proposal of the Commission of the European Communities and provided a theoretical explanation based on the entrepreneurial competition process. The appropriate public policy targeted to competition of railways in Central and Eastern Europe is also suggested