Abstract
In the last few years Netherlands Railways (NS) has to face much criticism about its way of acting in the Dutch transportation market. NS needs grants from government and even then transit prices are high. Price changes in both directions (higher for peak hours, lower for other sectors) are criticized heavily and do not seem to be understood. This contribution will attempt to explain the economics of rail transit pricing in the Netherlands. The relation between government and railway company, the market, production and cost structure of Netherlands Railways is described and the principals of the welfare policies underlying different fare policies are discussed.