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Assuming the railway itself is public and shared, as in this case, how is rail a natural monopoly?
by icebraining 8y ago
Assuming the railway itself is public and shared, as in this case, how is rail a natural monopoly?
- jnty 8y agoA key reason is that off-peak services are often subsidised by on-peak services, so to economically provide a good all-day service the whole thing needs to be provided by the same operator.
- icebraining 8y agoNo reason to require a single operator, you just need a shared "pot" to move money around. On-peak trains pay into the pot, off-peak trains get money from it.