Quality Competition in Bus Services. Some Welfare Implications of Bus Deregulation

Quality Competition in Bus Services. Some Welfare Implications of Bus Deregulation

The authors find that a competitive equilibrium will have only two firms, providing that services of different quality are at different fares. They consider factors influencing consumers' welfare under competition and where there is a public monopolist. Where there is already competition between buses and taxis, there may be no scope for minibuses as a third competitor.

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