Competition on an Urban Bus Route

Competition on an Urban Bus Route

Deregulation of the bus industry and reduction of costs and subsidy would probably lead to the introduction of smaller buses, giving faster and more frequent service but at higher fares. There would be fewer cheap big buses, so poorer people might be worse off.

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Economies of Scale in Bus transport: I. Some British Municipal Results

This study was prompted by the proposal to merge a number of municipal transport undertakings into Passenger transport Authorities. The authors analyse figures showing various working expenses per bus-mile, and find no evidence of scale economies. They point out, however, that the P.T.A.s will be larger than any undertaking in their sample, and that a different conclusion might conceivably be reached if data were available on costs per passenger-mile. Extension of one-man operation appears to offer greater scope for economies than amalgamation.

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