Deregulation of Swedish State Railways leads to cost structure impacts.
The article discusses how the organization of Swedish State Railways, SJ, changed from 1986 to 2000 due to deregulation. It explores the impact of deregulation on the cost structure, identifying sources of scale economies and forces affecting costs. The study found that deregulation influences both the internal structure of companies and the market structure, leading to adjustments in organizational structure to fit new market conditions. This, in turn, affects the cost structure. Even if new competitors don't enter the market, the threat of competition can still impact costs.