PRESENTATION OF THE RAIL FREIGHT MARKET’S CONCENTRATION WITH RESPECT TO THE GAS MARKET WITH THE HELP OF THE HERFINDAL-HIRSCHMAN INDEX

Abstract

Purpose. To demonstrate the current level of concentration on the rail freight market and to find a feasible long-term way for its expansion and progress by exploring and comparing it to another industrial branch well ahead on the road of concentration. Methodology. To identify an industrial branch being at an appropriate level of concentration, therefore being suitable for the purpose. To adapt the Herfindahl-Hirschman Index (HHI) for measuring the level of concentration of the market. Finally, to make a series of comparisons between the levels of concentrations of the two markets. Findings. In terms of concentration of the market, the liberalisation was more successful in the gas sector than in the rail freight sector, in Hungary. Therefore, the Hungarian gas sector is to be abandoned for comparison purposes and another, more suitable should be picked. Figures in the charts and findings of the application of the HH Index demonstrate that the liberalisation process in the energetics sector in Estonia has been most efficient. The methods of the Estonian process may be applicable for reducing the level of concentration on the rail freight market in Hungary. Originality. Novelty as far as the application of the Herfindahl-Hirschman Index for the purposes of the investigation is concerned. An innovative approach to analyse the structure of the rail freight market by a test, which has been unique so far in Hungary. Practical value. By using a mathematical method, a market suitable for testing can be selected. The results of the analyses can be adopted for the purposes of the rail freight market.

Keywords

• rail
• gas
• market
• liberalization
• Herfindahl-Hirschman Index
• freight