5. Analysis- what went wrong?

when an organziation split up, there is a conflict between duplication and efficiency. Public dominance over the privatized railway is actually a clear case, not of market failure but of government and regulatory failure. 

- A degree of fragmentation may indeed be necessary in the rail market to ensure some form of competition. an efficient railway industry needs to be vertically integrated and so needs to be restructed once more. 

Privatization could have been the answer to Britain;s rail probems, but the job can only be completed by restructing and genuine deregulation. Look at the American one. 

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