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Hereford: A Case Study of Bus Deregulation

Hereford: A Case Study of Bus Deregulation

Hereford was a trial area in which buses were deregulated before national deregulation. The author traces the effects of competition and draws some conclusions for deregulation generally. Competitive tendering, introduced by the county council, was a success and was adopted nationally in the transport Act 1985.

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Deregulating Taxi Services: A Word of Caution

This paper studies pricing and capacity decisions in markets for phone-ordered taxicabs. Firms first choose capacities and then compete in prices. As firm demand increases, so does waiting time. This dampens competition and makes prices too high from the social point of view. Efficiency improves if firms choose large capacities. In a two-firm setting, equilibrium capacities are shown to be larger if both firms maximise total profits than if they maximise profits per cab.

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