Deutsche Bahn: Rail Network Monopoly, Financial Locusts and the State

Abstract Deutsche Bahn had to pay a total dividend of 2.85 billion euro over the past six years with cumulated annual results of just under 2.35 billion euro. During that time period, DB Netz AG pursued a monopolistic pricing policy for the transport companies on downstream competitive markets, whic...

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Main Authors: Thomas Ehrmann, Aloys Prinz
Format: Article
Language:deu
Published: Sciendo 2020-10-01
Series:Wirtschaftsdienst
Online Access:https://doi.org/10.1007/s10273-020-2766-4
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author Thomas Ehrmann
Aloys Prinz
author_facet Thomas Ehrmann
Aloys Prinz
author_sort Thomas Ehrmann
collection DOAJ
description Abstract Deutsche Bahn had to pay a total dividend of 2.85 billion euro over the past six years with cumulated annual results of just under 2.35 billion euro. During that time period, DB Netz AG pursued a monopolistic pricing policy for the transport companies on downstream competitive markets, which had serious consequences for both DB’s own companies and its competing transport companies. This article explains why the company was economically forced to use the strategies that it did. It then outlines what the shareholder should do to achieve the goals set out in the coalition agreement. This agreement states the aim is “the increase in the market share of the railways”, whereby “the focus is not on maximizing the profit, but on sensibly maximising the traffic on the railways”. In economic terms, this means that the transport output by rail should be maximised instead of profits.
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institution Kabale University
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publishDate 2020-10-01
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series Wirtschaftsdienst
spelling doaj-art-0e3b692badb84799bf209cc8732de68c2025-02-02T11:10:21ZdeuSciendoWirtschaftsdienst0043-62751613-978X2020-10-011001079980210.1007/s10273-020-2766-4Deutsche Bahn: Rail Network Monopoly, Financial Locusts and the StateThomas Ehrmann0Aloys Prinz1Strategisches Management, Westfälische Wilhelms-Universität MünsterInstitut für Finanzwissenschaft II, Westfälische Wilhelms-Universität MünsterAbstract Deutsche Bahn had to pay a total dividend of 2.85 billion euro over the past six years with cumulated annual results of just under 2.35 billion euro. During that time period, DB Netz AG pursued a monopolistic pricing policy for the transport companies on downstream competitive markets, which had serious consequences for both DB’s own companies and its competing transport companies. This article explains why the company was economically forced to use the strategies that it did. It then outlines what the shareholder should do to achieve the goals set out in the coalition agreement. This agreement states the aim is “the increase in the market share of the railways”, whereby “the focus is not on maximizing the profit, but on sensibly maximising the traffic on the railways”. In economic terms, this means that the transport output by rail should be maximised instead of profits.https://doi.org/10.1007/s10273-020-2766-4
spellingShingle Thomas Ehrmann
Aloys Prinz
Deutsche Bahn: Rail Network Monopoly, Financial Locusts and the State
Wirtschaftsdienst
title Deutsche Bahn: Rail Network Monopoly, Financial Locusts and the State
title_full Deutsche Bahn: Rail Network Monopoly, Financial Locusts and the State
title_fullStr Deutsche Bahn: Rail Network Monopoly, Financial Locusts and the State
title_full_unstemmed Deutsche Bahn: Rail Network Monopoly, Financial Locusts and the State
title_short Deutsche Bahn: Rail Network Monopoly, Financial Locusts and the State
title_sort deutsche bahn rail network monopoly financial locusts and the state
url https://doi.org/10.1007/s10273-020-2766-4
work_keys_str_mv AT thomasehrmann deutschebahnrailnetworkmonopolyfinanciallocustsandthestate
AT aloysprinz deutschebahnrailnetworkmonopolyfinanciallocustsandthestate